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Morgan Stanley (MS)

- NYSE
  • Tue, Mar. 17, 11:10 AM
    • A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
    • Previously: Poor results at Jefferies sinks Leucadia (March 17)
    • Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 2 Comments
  • Thu, Mar. 12, 12:47 PM
    • Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
    • Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
    • JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
    • The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
    • Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
    • Source: Benzinga
    | 4 Comments
  • Thu, Mar. 12, 8:07 AM
    | 8 Comments
  • Wed, Mar. 11, 5:36 PM
    • Top gainers, as of 5:15 p.m.: SCLN +11.0%. ZOES +4.1%. AMRN +3.6%. MW +3.6%. MS +3.3%.
    • Top losers, as of 5:15 p.m.: ACAD -21.0%. BOX -16.2%. PQ -13.7%. KKD -7.0%. SHAK -6.1%.
    | 4 Comments
  • Wed, Mar. 11, 4:44 PM
    • Goldman's Sachs' (NYSE:GS) first score of 5.8% was only marginally ahead of the 5% threshold, but the resubmitted capital plan came in at 6.4%
    • Morgan Stanley (NYSE:MS) was 5.9% on both tests, so one wonders what changed. The company has announced a $3.1B buyback through the end of 2016 Q2 as well as a boost in the quarterly dividend to $0.15 per share from $0.10.
    • JPMorgan (NYSE:JPM) lifted its score from a barely scraping by 5% to 5.5%.
    • There's no word yet on the details of Goldman's or JPMorgan's plans.
    • GS +0.9%, MS +1.8%, JPM +0.1% after hours.
    • Previously: BofA must resubmit capital plan; Deutsche and Santander rejected (March 11)
    • CCAR results
    | 4 Comments
  • Tue, Jan. 20, 7:34 AM
    • Excluding DVA, Q4 income from continuing operations of $903M or $0.40 per share vs. $336M and $0.15 one year ago.
    • Institutional Securities net revenue excluding DVA of $3.2B vs. $3.7B one year ago, with pretax loss of $1.08B vs. pretax loss of $880M one year ago. Advisory revenues of $488M vs. $451M, thanks to boosted M&A activity. Equity sales and trading revenue of $1.6B vs. $1.5B. FICC revenue (excl.DVA) of $599M vs. $694M (-13.7%).
    • Wealth Management revenue of $3.8B vs. $3.7B one year ago, and pretax income of $736M vs. $715M. Asset management fee revenue of $2.1B vs. $2B. Transactional revenues of $976M vs. $1.1B. Net interest income of $625M vs. $526M. Compensation expense of $2.3B vs. $2.1B. Total client assets more than $2T at year's end, with those in fee-based accounts of $785B up 13%. WM reps of $16,076 slips from $16,456.
    • Investment Management revenue of $588M vs. $858M one year ago, with pretax loss of $6M vs. profit of $331M.
    • Previously: Morgan Stanley misses by $0.08, misses on revenue (Jan. 20)
    • MS -2% premarket
    | Comment!
  • Mon, Jan. 5, 11:13 AM
    • A now former Morgan Stanley (MS -3.2%) employee stole partial client data on up to 10% of all Wealth Management clients, and certain account information of roughly 900 clients - including account names and numbers - was briefly posted on the Internet. The stolen data does not include passwords or social security numbers.
    • The exposure was quickly detected by Morgan, and removed.
    • Source: Press Release
    | Comment!
  • Dec. 9, 2014, 8:52 AM
    | 2 Comments
  • Oct. 17, 2014, 3:03 PM
    • "We view this as a great quarter, which demonstrates good progress on both production and efficiency. We continue to like Morgan Stanley (MS +1.8%) and its peers, and believe the recent pullback represents an attractive buying opportunity. We expect a good Q4 follow-through, and believe CCAR capital returns will be increased in the next couple of cycles as excess capital builds," says MKM's David Trone.
    • "The beat was entirely driven by the top-line which came in $0.15 higher due to better than expected investment banking, FICC, and equities," says Citi's Keith Horowitz and Chris Larmoyeux. The beat despite the high bar for capital markets names, he says, bodes well for the stock, particularly given the recent sizable selloff.
    • Previously: Morgan Stanley higher after earnings beat
    | Comment!
  • Oct. 17, 2014, 7:30 AM
    • Q3 income from continuing operations (excluding DVA) of $1.6B of $0.77 per share vs. $1B and $0.50 one year ago. This year's Q boosted by net discrete tax benefit of $237M or $0.12 per share.
    • Institutional Securities pre-tax income from continuing operations of $1.2B vs. $396M a year ago. Advisory revenue of $392M vs. $275M thanks to boosted M&A activity. Equity underwriting revenue of $464M vs. $236M thanks to boosted IPO activity. FICC net revenue of $997M vs. $835M (about inline with what a few other banks posted). Compensation expense of $1.8B vs. $1.6B.
    • Wealth Management pre-tax income of $836M vs. $668M a year ago, on net revenue of $3.8B vs. $3.5B. Asset management fees of $2.2B vs. $1.9B. Net interest income of $601M vs. $493M thanks to higher deposits and loan balances. Compensation expense of $2.2B vs. $2B. Wealth managers of 16,162 fell from 16,517, with average annualized revenue per advisor of $932K up 10%.
    • Investment Management pre-tax income of $188M vs. $300M a year ago.
    • Tangible book value per share of $29.25. Roughly $195M of stock repurchased during Q, or 5.9M shares.
    • MS +2.8% premarket
    • Previously: Morgan Stanley beats by $0.23, beats on revenue
    | Comment!
  • Sep. 17, 2014, 3:16 PM
    • Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
    • Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
    • U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
    • MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
    • Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
    • Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
    | 6 Comments
  • Sep. 9, 2014, 12:24 PM
    • The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
    • Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
    • What's not yet clear is who would need to raise capital to meet the new, tougher standard.
    • Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 25 Comments
  • Sep. 5, 2014, 9:46 AM
    • Morgan Stanley (MS -1.2%) is an outlier to the downside among the big banks after Macquarie rings the register on its Outperform call, downgrading to Neutral, citing capital returns that have lagged peers.
    | 1 Comment
  • Jul. 17, 2014, 7:33 AM
    • Excluding DVA, income of $1.9B or $0.91 per share vs. $900M and $0.37 one year ago. The quarter also included a discrete tax benefit of $609M - excluding that brings income down to roughly $1.3B and $0.60 per share, so the "beat" is closer to a nickel.
    • Institutional Securities pre-tax income of $927M vs. $806M one year ago on roughly flat revenue of $4.16B (excl. DVA). FICC revenue of $1B slips from $1.2B, partially offset by higher advisory revenue. Equity sales and trading revenue of $1.8B was about flat. Compensation expense slipped by $100M to $1.7B.
    • Wealth Management pre-tax income of $767M rises from $655M a year ago on revenue of $3.715B up from $3.531B. Pre-tax margin rises above 20%, coming in at 21%.
    • Investment Management pre-tax income of $205M up from $160M a year ago on revenue of $692M up from $673M. AUM of $396B up from $347B thanks to market appreciation and positive flows.
    • About $284M or 9.3M shares of stock repurchased during quarter. Morgan has approval from the Fed for $1B in buybacks through the end of 2015 Q1.
    • MS +2.2% premarket
    • Previously: Morgan Stanley beats by $0.35, beats on revenue
    | Comment!
  • May. 5, 2014, 10:20 AM
    • A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).
    • Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.
    • Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."
    • Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).
    • The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)
    • XLF -0.7%, KBE -0.8%
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC
    | 16 Comments
  • Apr. 17, 2014, 12:15 PM
    • On the surface, Morgan Stanley's (MS +3.5%) Q1 results appear far better than those of Goldman Sachs (GS +0.6%), with FICC revenues up 9% Y/Y vs. a decline at Goldman. But Oppenheimer's Chris Kotowski notes Morgan had an especially easy comparison since 2013 Q1 was particularly weak. "Nonetheless, it is always nice to see year-over-year growth, and Morgan Stanley's is the best we have seen so far."
    • Kotwoski also takes note of return on tangible common equity - 11.1% at Goldman vs. 10.9% at Morgan. Despite the lower ROE, Morgan trades for 10.3x 2015 estimates vs. 9.4x for Goldman. Investors may want to have to take a harder look at which one to buy.
    | 1 Comment
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Company Description
Morgan Stanley through its subsidiaries and affiliates, provides financial products and services to a diversified group of clients and customers, including corporations, governments, financial institutions and individuals.