Morgan Stanley to Report Q4 Earnings with Strong Projections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MS?
Source: Newsfilter
- Earnings Release Date: Morgan Stanley is set to report its Q4 2023 earnings on April 15, with expectations that the results will positively impact its stock price.
- Earnings Forecast: Analysts predict an EPS of $3.01 and revenue of $19.7 billion, which could enhance investor confidence and potentially drive the stock price higher.
- New Product Launch: The launch of the Bitcoin Trust signifies Morgan Stanley's strategic move into digital assets, not only diversifying its product offerings but also attracting a younger investor demographic.
- Stock Price Reaction: Following the Bitcoin Trust announcement, Morgan Stanley's stock rose by 1.2%, indicating a positive market response to its new business initiatives and reinforcing its competitive position in the financial services sector.
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Analyst Views on MS
Wall Street analysts forecast MS stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 178.160
Low
132.00
Averages
185.00
High
219.00
Current: 178.160
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Bitcoin ETF Launch: Morgan Stanley's spot Bitcoin ETF debuted on Wednesday, generating approximately $46 million in net inflows, marking a significant milestone for the investment bank and likely enhancing its influence in the cryptocurrency market.
- Future Product Plans: The firm has filed for Ethereum and Solana ETFs, indicating a long-term strategic intent in the crypto space, with expectations to expand investment opportunities through new products like tokenized money market funds.
- Fee Competitive Advantage: The newly launched Bitcoin ETF features a low expense ratio of 0.14%, undercutting most competitors, which not only helps attract more investors but may also pressure BlackRock's leading ETF, driving fee compression across the industry.
- Digital Asset Strategy Exploration: Morgan Stanley's subsidiary Parametric has established various rules-based investment strategies, and there are plans to explore using digital assets to help clients offset capital gains taxes, further broadening its service offerings in the digital asset space.
See More
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- Goldman Sachs Forecast: Goldman Sachs is expected to report earnings on Monday, with analysts forecasting double-digit earnings and revenue growth driven by strong performance in equities trading, asset, and wealth management units, and historical data shows the bank beats profit expectations 87% of the time.
- Johnson & Johnson Momentum: Johnson & Johnson is set to report earnings on Tuesday, and while its earnings per share are expected to decline slightly year-over-year, the stock has risen 15% year-to-date, prompting analysts to watch for potential stock price boosts post-report, with a historical 95% success rate in beating earnings expectations.
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- Volatility Warning: While Bitcoin is recommended due to its solid historical performance, other cryptocurrencies like Ethereum and Solana exhibit volatility far exceeding Bitcoin's, thus advising to limit their allocation to 1% to 2% of the total portfolio to mitigate risk.
- Regular Rebalancing: Investors should be aware that cryptocurrency volatility can inflate allocation percentages during bull markets and reduce them during downturns, making regular rebalancing crucial for maintaining risk control.
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- Market Reaction: Following the announcement, Schwab's stock fell nearly 3%, reflecting investor concerns about the overall profitability outlook for the financial sector, particularly in brokerage and securities exchange operations.
- Profitability Expectations: Morgan Stanley anticipates that profitability in the financial sector will be 4% to 5% below consensus estimates for both 2026 and 2027, suggesting that reduced trading activity and client engagement may impact Schwab's earnings.
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- Investor Caution: Cramer warns that despite the market's rebound, investors should refrain from making hasty decisions due to the ongoing instability in Iran, which could impact the global economy and the critical shipping routes in the Strait of Hormuz.
- Earnings Outlook: Goldman Sachs is set to report earnings on Monday, with Cramer predicting a solid performance from its trading desk, benefiting from market volatility, indicating a potential recovery in the banking sector.
- Industry Dynamics: Next week, major banks like JPMorgan, Wells Fargo, and Citigroup will release earnings, with Cramer highlighting JPMorgan's cautious commentary and Wells Fargo's long-term turnaround strategy, showcasing varied perspectives on the banking industry's future.
See More
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- Bitcoin ETF Launch: Morgan Stanley's spot Bitcoin ETF debuted on Wednesday, generating approximately $46 million in net inflows, marking a significant milestone for the investment bank and likely enhancing its influence in the cryptocurrency market.
- Future Product Plans: The firm has filed for Ethereum and Solana ETFs, indicating a long-term strategic intent in the crypto space, with expectations to expand investment opportunities through new products like tokenized money market funds.
- Fee Competitive Advantage: The newly launched Bitcoin ETF features a low expense ratio of 0.14%, undercutting most competitors, which not only helps attract more investors but may also pressure BlackRock's leading ETF, driving fee compression across the industry.
- Digital Asset Strategy Exploration: Morgan Stanley's subsidiary Parametric has established various rules-based investment strategies, and there are plans to explore using digital assets to help clients offset capital gains taxes, further broadening its service offerings in the digital asset space.
See More
Earnings Season Kicks Off Amid Investor Anticipation
- Earnings Wave: This week, 27 S&P 500 companies, including banking giants like JPMorgan Chase and Goldman Sachs, are set to report earnings, and despite the tense situation in the Middle East, analysts expect a strong earnings season with S&P 500 first-quarter profits projected to grow 13% year-over-year, marking the sixth consecutive quarter of double-digit profit growth.
- Goldman Sachs Forecast: Goldman Sachs is expected to report earnings on Monday, with analysts forecasting double-digit earnings and revenue growth driven by strong performance in equities trading, asset, and wealth management units, and historical data shows the bank beats profit expectations 87% of the time.
- Johnson & Johnson Momentum: Johnson & Johnson is set to report earnings on Tuesday, and while its earnings per share are expected to decline slightly year-over-year, the stock has risen 15% year-to-date, prompting analysts to watch for potential stock price boosts post-report, with a historical 95% success rate in beating earnings expectations.
- Morgan Stanley Growth Outlook: Morgan Stanley is scheduled to report earnings on Thursday, with analysts predicting a roughly 15% year-on-year growth in earnings, primarily benefiting from its wealth management division, and historical data indicates the firm has beaten earnings expectations in every quarter since early 2023.
See More
Asset Managers Recommend Cryptocurrency Allocation Strategies
- Allocation Recommendations: Major asset manager BlackRock advises a 1% to 2% Bitcoin allocation within a standard 60/40 stock-and-bond portfolio to manage investment risk while maintaining potential returns.
- Risk Assessment: Morgan Stanley suggests a maximum crypto allocation of 3% for moderate-growth investors and 4% for aggressive portfolios, aligning with Fidelity's recommendation of 2% to 5%, highlighting the importance of crypto in diversified investments.
- Volatility Warning: While Bitcoin is recommended due to its solid historical performance, other cryptocurrencies like Ethereum and Solana exhibit volatility far exceeding Bitcoin's, thus advising to limit their allocation to 1% to 2% of the total portfolio to mitigate risk.
- Regular Rebalancing: Investors should be aware that cryptocurrency volatility can inflate allocation percentages during bull markets and reduce them during downturns, making regular rebalancing crucial for maintaining risk control.
See More
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- Price Target Cut: Morgan Stanley analyst Michael Cyprys lowered Schwab's price target from $148 to $135, reflecting a cautious outlook on the overall profitability of the financial sector, although he maintains a buy rating, indicating confidence in the company's long-term prospects.
- Stock Price Movement: Following the announcement, Schwab's shares fell nearly 3% to $94.81, with a market cap of $170 billion, highlighting investor concerns about future profitability, particularly against a backdrop of reduced trading activity.
- Earnings Expectations: Morgan Stanley anticipates that Schwab and its peers will see only modest profitability improvements of 4% to 5% below consensus estimates for 2026 and 2027, reflecting a cautious stance on market activity levels.
- Market Sentiment: Despite the analyst's cautious outlook for Schwab, there are still views suggesting ample capital in the markets and a generally bullish investor sentiment, with Schwab stock seen as a buy opportunity unless a severe global economic slowdown occurs due to the Iran war.
See More
Morgan Stanley Cuts Schwab Price Target Amid Bearish Sentiment
- Price Target Reduction: Morgan Stanley analyst Michael Cyprys lowered Schwab's price target from $148 to $135, yet he maintains a buy recommendation, indicating confidence in the company's long-term prospects.
- Market Reaction: Following the announcement, Schwab's stock fell nearly 3%, reflecting investor concerns about the overall profitability outlook for the financial sector, particularly in brokerage and securities exchange operations.
- Profitability Expectations: Morgan Stanley anticipates that profitability in the financial sector will be 4% to 5% below consensus estimates for both 2026 and 2027, suggesting that reduced trading activity and client engagement may impact Schwab's earnings.
- Investor Sentiment: Despite cautious market sentiment, there remains ample capital in the securities markets, and analysts believe that unless a severe global economic slowdown occurs due to the Iran war, Schwab stock is still a buy.
See More
Market Overconfidence Raises Caution Flags for Investors
- Market Rally: The S&P 500 surged 3.6% this week, driven by President Trump's two-week ceasefire announcement with Iran, while the Nasdaq and Dow gained 4.7% and 3% respectively, reflecting a surge of optimism in the market.
- Investor Caution: Cramer warns that despite the market's rebound, investors should refrain from making hasty decisions due to the ongoing instability in Iran, which could impact the global economy and the critical shipping routes in the Strait of Hormuz.
- Earnings Outlook: Goldman Sachs is set to report earnings on Monday, with Cramer predicting a solid performance from its trading desk, benefiting from market volatility, indicating a potential recovery in the banking sector.
- Industry Dynamics: Next week, major banks like JPMorgan, Wells Fargo, and Citigroup will release earnings, with Cramer highlighting JPMorgan's cautious commentary and Wells Fargo's long-term turnaround strategy, showcasing varied perspectives on the banking industry's future.
See More
