Morgan Stanley (NYSE: MS) announced its Q3 earnings with revenues of $13 billion, a decline of 11.9% year-over-year and falling short of analysts’ estimates by $320 million. Adjusted earnings came in at $1.53 per share in the third quarter, a decline of 25% year-over-year. Analysts were expecting earnings of $1.52 per share.
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The bank delivered a 15% return on tangible common equity.
James Gorman, Chairman, and CEO of Morgan Stanley commented, “Wealth Management added an additional $65 billion in net new assets and produced a pre-tax margin of 28%, excluding integration-related expenses, demonstrating scale and stability despite declining asset values…We continue to maintain our strong capital position while repurchasing $2.6 billion of shares and distributing a healthy dividend.”
Is MS a Buy or Sell?
Wall Street analysts are cautiously optimistic about Morgan Stanley rating it a Moderate Buy. This consensus rating is based on nine Buys, five Holds, and one Sell.
The average price forecast for MS stock is $93.69 implying an upside potential of 18.1% at current levels.
