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Earnings Preview for Morgan Stanley

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Morgan Stanley (NYSE:MS) announces its next round of earnings this Friday, April 16. Here is Benzinga's everything-that-matters guide for this Friday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Morgan Stanley will report earnings of $1.7 per share on revenue of $14.09 billion. Morgan Stanley EPS in the same period a year ago totaled $0.99. Sales were $9.49 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Friday, earnings would be up 71.72%. Revenue would be up 48.52% on a year-over-year basis. Morgan Stanley's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 1.27 1.28 1.12 1.14
EPS Actual 1.92 1.66 1.96 0.99
Revenue Estimate 11.54 B 10.64 B 10.31 B 9.73 B
Revenue Actual 13.64 B 11.66 B 13.41 B 9.49 B

eps graph

Stock Performance

Shares of Morgan Stanley were trading at $80.84 as of April 14. Over the last 52-week period, shares are up 105.5%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Morgan Stanley is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings