MISS: Morgan Stanley Revenue And Earnings Fall Short, Shares Fall

Morgan Stanley Times Square

Photo: Mario Tama/Getty Images

Morgan Stanley just announced Q2 earnings, and as expected, the announcement is noisy.Earnings excluding debt valuation adjustments (DVA) gains came in at $0.16 per share.  Bloomberg is reporting that this falls short of the Wall Street’s expectation of $0.29 per share.

DVA is an accounting adjustment that’s beneficial to a bank when it’s borrowing costs rise.

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Here’s are some highlights (or lowlights) from Morgan’s Institutional Securities business:

  • Advisory revenue plunged to $263 million, down from $533 million a year ago.
  • Fixed income and commodities sales and trading dived to $770 million from $1.9 billion a year ago.
  • Equity sales and trading fell to $1.1 billion from $1.8 billion.

“Although global economic uncertainty remains a headwind, we are proactively positioning the Firm for success,” said CEO James Gorman.  “Our businesses showed resilience in key areas during the quarter, and we made progress against strategic goals.”

Here’s a breakdown of all of Morgan Stanley’s business:

morgan stanley

Photo: Morgan Stanley via Yahoo

Morgan Stanley is expected to announce Q2 earnings at 7:15 AM.

Analyst expect the banking giant to deliver a earnings of $0.43 per share.

Last year, Morgan announced a loss of $0.38 per share.

“Investment banking revenue are likely to be down 5-10% q/q (down ~45% y/y given a tough comp),” writes Deutsche Bank analyst Michael Carrier.

SEE ALSO: 16 Words That Will Make You Sound Like A Wall Street Hotshot >

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