Earnings Preview: Morgan Stanley

Apr.18.12 | About: Morgan Stanley (MS)

Morgan Stanley (NYSE:MS) is expected to report Q1 earnings before the market open on Thursday, April 19, with a conference call scheduled for 10:00 am ET.


The consensus estimate is 42c for EPS and $7.31B for revenue, according to First Call. There are some signs that Q1 may have been a difficult quarter for Morgan Stanley. Goldman Sachs (NYSE:GS) reported that client activity remains low in certain areas, especially in parts of investment banking. Furthermore, JP Morgan (NYSE:JPM) said that the net income of its investment bank tumbled 29% year-over-year last quarter. Moreover, in a note to investors on April 5, Wells Fargo lowered its EPS estimate for Morgan Stanley to (46c) from 40c. The firm predicted, based on March trading data, that overall Q1 trading revenue would be flat to down 22% year-over-year. On the other hand, Citigroup (NYSE:C) said its fixed income business was "particularly strong" in Q1, and firms' trading results sometimes vary widely. Morgan Stanley's stock, however, has dropped nearly 10% over the last month, indicating that investors may have low expectations for the company's Q1 results.