Morgan Stanley Beats Up on Analysts Yet Again

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Morgan Stanley (NYS: MS) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Morgan Stanley beat expectations on revenues.

Compared to the prior-year quarter, revenue shrank significantly and earnings per share shrank to a loss.

Margins shrank across the board.

Revenue details
Morgan Stanley logged revenue of $5.71 billion. The 15 analysts polled by S&P Capital IQ expected to see revenue of $5.22 billion. Sales were 28% lower than the prior-year quarter's $7.81 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.14. The 16 earnings estimates compiled by S&P Capital IQ averaged -$0.54 per share on the same basis. GAAP EPS were -$0.15 for Q4 versus $0.02 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 85.0%, 460 basis points worse than the prior-year quarter. Operating margin was -8.0%, 5,160 basis points worse than the prior-year quarter. Net margin was -4.4%, 1,490 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.24 billion. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $32.41 billion. The average EPS estimate is $1.93.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,547 members out of 1,939 rating the stock outperform, and 392 members rating it underperform. Among 510 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 411 give Morgan Stanley a green thumbs-up, and 99 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Morgan Stanley is outperform, with an average price target of $22.82.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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