The year 2015 started out strong for Morgan Stanley, with net incomes of $2.4 billion, $1.8 billion, and $1.7 billion for the first three-quarters, respectively.
The earnings per share of the multinational bank plunged by about 42.2 percent during the most recent quarter, in comparison to the same quarter in the prior year.
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.
Two of America’s biggest banks reported earnings that were better than expected yesterday, thanks to rigorous cost-cutting and lower legal expenses. Gerstein Fisher now owns 12,275 shares of the financial services provider’s stock worth $387,000 after buying an additional 1,218 shares during the last quarter.
Morgan Stanley reported a fourth-quarter profit, compared with a year-earlier loss, as its legal costs plunged and compensation expenses fell. The Price to Sales Ratio for Morgan Stanley is 1.49.
Excluding DVA, Net Revenues were $7.9 Billion which amounted to Earnings per Diluted Share of $0.43.
Excluding accounting charges, revenue climbed 5.3 percent to $7.9 billion, exceeding the $7.67 billion estimate of 20 analysts surveyed by Bloomberg. Revenue rose 3.2% to $19.6 billion, missing estimates of $19.8 billion. Beacon Capital Management acquired a new stake in shares of Morgan Stanley during the fourth quarter valued at about $0.
The firm last week named Sam Kellie-Smith, who helped Morgan Stanley become Wall Street’s top equities-trading shop by revenue, to revamp fixed income.
Just recently, several analysts have given their ratings on the MS stock.
Morgan Stanley reduced the size of its fixed-income currency and commodities segment earlier this 2016.
“They didn’t pull the “full monty” in terms of restructuring, but they gave you a whole lot of cost saves to drive efficiency”, Glenn Schorr, an analyst with Evercore ISI, said. The dip is considerably less than its competitors and is expected to catch investors’ attention, considering Morgan Stanley’s previous revenue concerns from the trading division. The company had revenue of $7738.00 million for the quarter, compared to analysts expectations of $7473.32 million.
Client assets in fee-based accounts were $795 billion, up 3 percent from the third quarter and up 1 percent from a year ago. The firm’s compensation as a percentage of revenue was 46%, the lowest since the financial crisis, excluding certain accounting adjustments.