Have you been eager to see how Morgan Stanley (MS - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based leading financial services holding company’s earnings release this morning:
An Earnings Beat
Morgan Stanley came out with earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.28.
Improved revenues were the main reason for earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Morgan Stanley depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days.
Notably, Morgan Stanley has an impressive earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in each of the prior four quarters, as shown in the chart below:
Morgan Stanley Price and EPS Surprise
Overall, on an average the company posted positive earnings surprise of 12.4% in the trailing four quarters.
Higher-than-Expected Revenues
Morgan Stanley posted net revenues of $11.1 billion, which beat the Zacks Consensus Estimate was $10.5 billion. The figure compared favorably with the year-ago number of $9.7 billion.
Key Q1 Statistics:
- Net income applicable to Morgan Stanley was $2.7 billion, up 38% year over year
- Sales & Trading revenue were $4.4 billion, surging 26% year over year
- Investment banking revenues were $1.5 billion, up 7% from the prior-year quarter
- Repurchased $1.25 billion worth shares during the quarter
What Zacks Rank Says
Morgan Stanley carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
How the Market Reacted So Far
