Morgan Stanley is slated to report earnings before the bell — here's what the Street Expects

Morgan Stanley is scheduled to report third-quarter earnings before the opening bell Tuesday.

Here's what Wall Street expects:

• Earnings: $1.01 per share, forecast by analysts polled by Refinitiv
• Revenue: $9.55 billion, forecast by Refinitiv
• Equity trading revenue: $1.98 billion, forecast by StreetAccount
• FICC revenue: $1.15 billion, forecast by StreetAccount

Top banking analysts cut their earnings per share estimates on Morgan Stanley in the weeks leading up to third-quarter earnings, citing weaker than expected revenues in the bank's institutional securities division.

RBC Capital Markets analyst Gerard Cassidy, for example, lowered his third-quarter EPS forecast to 99 cents last month on expectations for a decline in advisory fees and softer trading revenue.

"Institutional Securities tends to be a more volatile and unpredictable line of business for the company but the company continues to be a leading player in the Markets and Investment Banking businesses," Cassidy said in a note last month. The bank's equity division, the largest on Wall Street, delivered $2.5 billion in revenue in the second quarter, topping forecasts.

J.P. Morgan, often a bellwether for the rest of the nation's largest banks, posted $2.84 billion in bond trading revenue, a 10 percent decline that missed analysts' expectations for $2.96 billion. Shares of Morgan Stanley are down more than 17 percent so far this year.

Chief Executive Officer James Gorman has broadened Morgan Stanley's wealth management division, a more reliable source of revenue than the traditionally volatile trading operations. The CEO has also revamped the bank's fixed-income business, a strategic bet that helped the company eclipse rival Goldman Sachs in market capitalization earlier this year.

This is breaking news. Please check back for updates.

Let's block ads! (Why?)

from Top News & Analysis https://ift.tt/2pRfDgG