• Morgan Stanley‘s net revenue for the first quarter surpasses estimates, reaching $15.14 billion as opposed to the expected $14.46 billion.
• Wealth management net revenue hits $6.88 billion, higher than the estimated $6.69 billion.
• Equities sales & trading revenue goes beyond estimations, amounting to $2.84 billion against a predicted $2.65 billion.
• FICC sales & trading revenue also beats estimates, tallying to $2.49 billion compared to $2.33 billion
• Institutional Investment Banking revenue surpasses expectations of $1.34 billion, hitting $1.45 billion.
• Advisory revenue falls short of the projections of $510.1 million, tallying at $461 million.
• Equity underwriting revenue ($430 million) beats the estimate which stood at $326.3 million.
• Fixed Income Underwriting revenue ($556 million) outperforms the estimated $505.8 million.
• The Earnings per Share (EPS) is $2.02.
• Non-interest expenses match their $10.75 billion prediction.
• Compensation expenses exceed the estimate of $6.45 billion, reaching $6.70 billion.
• Non-compensation expenses fall below estimated figures, settling at $4.05 billion against an estimate of $4.27 billion.
• Net interest income falls short of estimate, standing at $1.80 billion as opposed to $1.96 billion.
• Book value per share reported is $55.60.
• Tangible book value per share comes to $41.07.
• Return on equity exceeds the estimate of 11.9% to come in at 14.5%.
• Return on tangible equity came in higher than estimated (+16.2%), recording at +19.7%.
• The standardized CET1 ratio matched the estimation at 15.1%.
• Effective tax rate stood at 21.2%, lower than the estimated 22%.
• Assets under management beat the estimates, reaching $1.51 trillion although they were projected to be $1.49 trillion.
• Fee-based asset flows fell below the estimated $28.14 billion to record at $26.2 billion.
• Expense efficiency ratio stood at 71%, lower than the estimated 74.3%.
• The company received 10 buys, 16 holds, and 0 sells from the analysts.
A look at Morgan Stanley Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on the Smartkarma Smart Scores, which rate various factors for Morgan Stanley, the company shows strong performance in Value and Dividend, scoring 4 out of 5 for both. This suggests that Morgan Stanley is seen as providing good value for investors and offering attractive dividend returns. However, the company’s Growth and Momentum scores are slightly lower at 3, indicating moderate performance in these areas. Additionally, the Resilience score of 2 suggests that there may be some concerns about the company’s ability to withstand economic shocks.
Morgan Stanley, a bank holding company offering diversified financial services globally, operates a robust global securities business catering to individual and institutional investors as well as investment banking clients. The company also manages a global asset management business. With solid Value and Dividend scores, Morgan Stanley appears well-positioned for long-term stability and potential returns, although the Growth, Resilience, and Momentum scores indicate areas that may require closer monitoring to ensure sustained growth and performance.
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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