- Morgan Stanley‘s net revenue for Q2 is $15.02 billion, surpassing the estimate of $14.27 billion.
- Wealth management net revenue is $6.79 billion, slightly below the estimate of $6.86 billion.
- Equities sales and trading revenue stands at $3.02 billion, beating the estimate of $2.68 billion.
- FICC sales and trading revenue hits $2.00 billion, exceeding the forecast of $1.86 billion.
- Institutional Investment Banking revenue reaches $1.62 billion, higher than the estimate of $1.37 billion.
- Advisory revenue comes in at $592 million, above the estimate of $523.3 million.
- Equity underwriting revenue is $352 million, slightly above the estimate of $346.8 million.
- Fixed Income Underwriting revenue is $675 million, surpassing the estimate of $515.8 million.
- Earnings per share (EPS) is reported at $1.82.
- Non-interest expenses total $10.87 billion, higher than the estimate of $10.57 billion.
- Compensation expenses are $6.46 billion, slightly above the estimate of $6.36 billion.
- Non-compensation expenses amount to $4.41 billion, beating the estimate of $4.22 billion.
- Net interest income is $2.07 billion, exceeding the estimate of $1.78 billion.
- Book value per share is $56.80.
- Tangible book value per share is $42.30.
- Return on equity (ROE) is 13%, higher than the estimate of 11.7%.
- Return on tangible equity is 17.5%, surpassing the estimate of 15.7%.
- The standardized CET1 ratio is 15.2%, slightly higher than the estimate of 15.1%.
- Provision for credit losses is $76 million, greater than the estimate of $54.3 million.
- The effective tax rate is 23.5%, matching closely with the estimate of 23%.
- Assets under management total $1.52 trillion, slightly under the estimate of $1.53 trillion.
- Fee-based asset flows are $26.0 billion, beating the estimate of $25.26 billion.
- Expense efficiency ratio is 72%, better than the estimate of 74.1%.
A look at Morgan Stanley Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at the Smartkarma Smart Scores for Morgan Stanley, the company seems to have a solid long-term outlook. With a high score of 5 in Momentum, indicating strong positive price trends, Morgan Stanley appears to be gaining traction in the market. Additionally, the company’s above-average scores in Dividend and Value suggest that it may offer good returns to investors while being reasonably priced. However, its lower score in Resilience could indicate potential vulnerabilities to market fluctuations. Overall, the diversified financial services offered by Morgan Stanley, coupled with its positive scores in key areas, position it well for potential growth and stability in the long run.
Morgan Stanley, a bank holding company with a global presence in securities, investment banking, and asset management, appears to be on a promising trajectory. The company’s strong performance in Momentum reflects increasing investor interest and positive market sentiment. Moreover, its solid scores in Dividend and Value hint at a company that could potentially reward investors with dividends and growth opportunities. Despite a lower score in Resilience, indicating some risk exposure, Morgan Stanley‘s overall profile suggests a favorable outlook for the future, reaffirming its status as a key player in the financial services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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