Zacks: Analysts Expect Morgan Stanley (NYSE:MS) Will Post Earnings of $1.60 Per Share

Equities analysts expect that Morgan Stanley (NYSE:MS) will post earnings of $1.60 per share for the current quarter, Zacks reports. Four analysts have made estimates for Morgan Stanley’s earnings, with estimates ranging from $1.49 to $1.76. Morgan Stanley posted earnings per share of $1.59 in the same quarter last year, which indicates a positive year-over-year growth rate of 0.6%. The firm is expected to announce its next earnings report before the market opens on Thursday, October 14th.

According to Zacks, analysts expect that Morgan Stanley will report full year earnings of $7.46 per share for the current fiscal year, with EPS estimates ranging from $7.24 to $7.98. For the next fiscal year, analysts forecast that the firm will post earnings of $7.15 per share, with EPS estimates ranging from $6.74 to $7.50. Zacks’ EPS calculations are a mean average based on a survey of research analysts that follow Morgan Stanley.

Morgan Stanley (NYSE:MS) last issued its quarterly earnings results on Wednesday, July 14th. The financial services provider reported $1.85 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.63 by $0.22. The company had revenue of $14.76 billion for the quarter, compared to the consensus estimate of $13.99 billion. Morgan Stanley had a net margin of 23.89% and a return on equity of 14.86%. The firm’s quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.96 EPS.

Several research firms have commented on MS. Argus upped their price objective on shares of Morgan Stanley from $93.00 to $105.00 and gave the company a “buy” rating in a report on Friday, July 16th. Evercore ISI reaffirmed a “buy” rating and set a $103.00 price objective on shares of Morgan Stanley in a report on Friday, July 2nd. Seaport Res Ptn downgraded shares of Morgan Stanley from a “buy” rating to a “neutral” rating in a report on Friday, August 13th. Oppenheimer upped their price objective on shares of Morgan Stanley from $99.00 to $105.00 and gave the company an “outperform” rating in a report on Friday, July 16th. Finally, Jefferies Financial Group initiated coverage on shares of Morgan Stanley in a report on Friday, July 16th. They set a “buy” rating and a $108.00 price objective on the stock. Eight research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Based on data from MarketBeat, Morgan Stanley currently has a consensus rating of “Buy” and a consensus price target of $95.74.

In other Morgan Stanley news, CFO Sharon Yeshaya sold 2,500 shares of the stock in a transaction that occurred on Wednesday, July 21st. The shares were sold at an average price of $95.64, for a total transaction of $239,100.00. Following the transaction, the chief financial officer now directly owns 24,895 shares in the company, valued at $2,380,957.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Andrew M. Saperstein sold 11,465 shares of the stock in a transaction that occurred on Friday, July 16th. The shares were sold at an average price of $92.97, for a total transaction of $1,065,901.05. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 25,430 shares of company stock worth $2,370,902. 0.23% of the stock is owned by company insiders.

Institutional investors have recently modified their holdings of the company. Close Asset Management Ltd bought a new position in shares of Morgan Stanley in the first quarter worth approximately $26,000. Trustcore Financial Services LLC bought a new position in shares of Morgan Stanley in the second quarter worth approximately $26,000. Selective Wealth Management Inc. bought a new position in shares of Morgan Stanley in the second quarter worth approximately $28,000. Samalin Investment Counsel LLC bought a new position in shares of Morgan Stanley in the second quarter worth approximately $28,000. Finally, Cowen Prime Advisors LLC bought a new position in shares of Morgan Stanley in the second quarter worth approximately $29,000. Hedge funds and other institutional investors own 84.72% of the company’s stock.

NYSE MS opened at $101.75 on Wednesday. The company has a market cap of $185.65 billion, a PE ratio of 13.55, a price-to-earnings-growth ratio of 2.20 and a beta of 1.56. Morgan Stanley has a 52 week low of $45.86 and a 52 week high of $105.81. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 2.23. The firm’s 50-day simple moving average is $99.90 and its two-hundred day simple moving average is $90.21.

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 13th. Investors of record on Friday, July 30th were given a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.75%. This is a boost from Morgan Stanley’s previous quarterly dividend of $0.35. The ex-dividend date was Thursday, July 29th. Morgan Stanley’s dividend payout ratio is 42.55%.

Morgan Stanley declared that its board has authorized a stock buyback program on Monday, June 28th that authorizes the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase up to 7.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

About Morgan Stanley

Morgan Stanley operates as a global financial services company. The firm provides investment banking products and services to its clients and customers including corporations, governments, financial institutions, and individuals. It operates through the following segments: Institutional Securities, Wealth Management, and Investment Management.

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