Morgan Stanley said its third-quarter profit fell as the company managed through choppy markets that depressed trading activity. Analysts were looking for Morgan Stanley to earn 67 cents per share, according to FactSet. The company had revenue of $7767.00 million for the quarter, compared to analysts expectations of $8460.87 million.
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Much of the trading shortfall was acknowledged by executives during a financial services conference before the end of the quarter, where many said that trading revenue would fall 5% to 6% from the previous year.
The investment banking giant posted third-quarter adjusted earnings of 42 cents per share, down from 65 cents a share in the year-earlier period. In 4QFY14, the unit generated around 49% of the total revenue, but the share declined to around 40% in the preceding quarter i.e. 2QFY15.
Institutional Securities posted quarterly pre-tax income from continuing operations of $688 million, versus pre-tax income of $1.2 billion in the year-ago quarter. The 50-Day Moving Average price is $33.03 and the 200 Day Moving Average price is recorded at $36.82.
Morgan Stanley joins archrival Goldman Sachs Group Inc (GS.N) as well as Citigroup Inc (C.N), Bank of America Corp (BAC.N) and JPMorgan Chase & Co (JPM.N) in reporting a drop in revenue from trading. The 12-month mean target price on the stock is $39.72.
Morgan Stanley (NYSE:MS) opened at 33.95 on Monday.
-Revenue Change (Y-o-Y): -12.8%. Transactional revenues fell from $912 million to $652 million.
Morgan Stanley (NYSE:MS): On Friday heightened volatility was witnessed in Morgan Stanley (NYSE:MS) which led to swings in the share price.
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Reported earnings were 48 cents per share, compared to last year’s 83 cents per share. Given the general trend, financial institutions in US have seen growth in loans and deposits while trading desks witnessed headwinds on the back of increased volatility in markets. The 52-week high of the share price is $41.04 and the company has a market cap of $66,317 million. On Jul 20, 2015, the shares registered one year high at $41.04 and the one year low was seen on October 2, 2015. In June 2014, Galileo Japan Trust announced that Morgan Stanley and its subsidiaries has ceased to be the substantial holder of the Company. The Company’s operating segments contain Investment Management, Wealth Management and Institutional Securities.
