Morgan Stanley (NYSE: MS) on Thursday noted a year-over-year hit to its Q1 profit and revenue. Its financial results for the quarter, however, were ahead of the Wall Street estimates. Shares are up nearly 2.0%.
Morgan Stanley Q1 financial highlights
Net earnings came in at $3.54 billion versus the year-ago figure of $3.98 billion.
- Per-share earnings stood at $2.02; a decline from last year’s $2.19.
- On an adjusted basis, Morgan Stanley earned $2.06 in the recent quarter.
- Revenue jumped 6.0% YoY to $14.8 billion, as per the earnings press release.
- FactSet consensus was for $1.71 of adjusted EPS on $14.25 billion in revenue.
- ROTCE of 19.8% in the first quarter was slightly below last year’s 21.1%.
Fixed income trading remained unchanged from last year while Morgan Stanley noted a 10% increase in equity income trading. The wealth management division was also unchanged.
Morgan Stanley stock likely has a 30% upside
Wall Street has an average price target of $108 on MS at present, that represents close to a 30% upside from here. Morgan Stanley reported more excess capital than its peers on Thursday. In the earnings press release, CEO James Gorman said:
A strong ROTCE of 20% despite market volatility and economic uncertainty demonstrates the resilience of our global diversified business. Q1 results affirm our sustainable business model is well-positioned to drive growth over the long term.
Last week, DCLA’s Sarat Sethi said Morgan Stanley down roughly 25% from its high in February was a great buying opportunity.
The post Morgan Stanley Q1 results: CEO says MS is well-positioned to drive growth appeared first on Invezz.
Source: https://invezz.com/news/2022/04/14/morgan-stanley-q1-results-ceo-says-ms-is-well-positioned-to-drive-growth/