Here comes Morgan Stanley earnings… (MS)
Morgan Stanley is set to announce second quarter earnings results Wednesday morning.
Here’s what analysts are expecting and other themes to look out for.
- Revenue: $10.08 billion
- Net income: $1.96 billion
- Earnings per share: $1.11
- Return on equity: 10.1%
- Trading: Investors will be looking for insight into whether the bank witnessed further growth in its trading business, specifically fixed income, which posted stellar results in the first quarter. They’re also watching to see if the bank can sustain its market share in equities, where it leads Wall Street. Other big banks, with the exception of Morgan Stanley rival Goldman Sachs, saw strong gains in their stock trading units in the second quarter.
- Succession: Morgan Stanley in July made several big promotions, which hinted at who might replace CEO James Gorman one day. With Goldman CEO Lloyd Blankfein announcing his retirement this week, investors will be listening closely for any clues about when Gorman might too step down.
- Macro environment: Bank CEOs have said that Trump’s tariff talk hasn’t yet impacted client activity, although BlackRock CEO Larry Fink has said otherwise. Investors will be looking to Gorman for any additional color on how a potential trade war is hurting or helping the bank.
Read the full article from it’s original source: http://uk.businessinsider.com/morgan-stanley-to-report-second-quarter-earnings-2018-7