Morgan Stanley CEO James Gorman participates in a chat-style interview with the Economic Club of Washington in Washington September 18, 2013.
Yuri Gripas | Reuters
Morgan Stanley is set to report third-quarter earnings before the opening bell on Friday.
Here’s what Wall Street expects:
- Earnings: $1.49 a share, 25% less than a year earlier, according to Refinitiv
- Revenue: $13.3 billion, down 10% from a year earlier
- Asset management: $6.17 billion, according to StreetAccount
- Trades: Stocks $2.68 billion, Fixed Income $1.96 billion, according to StreetAccount
- Investment banking: $1.21 billion, per StreetAccount
How does James Gorman’s bank navigate an increasingly volatile market?
That is the question for Morgan Stanley, whose investment banking, trading and wealth management operations are all affected by market volatility.
Wall Street banks are grappling with a fall in IPOs and debt and equity issuances this year, a sharp reversal from the deal boom that led to last year’s results. . The downturn was triggered by a widespread decline in financial assets, recession fears and the Ukraine war.
While analysts expect the bank’s asset management and investment management divisions – responsible for half of the company’s revenue – to hold up better than investment banking, the value of Lower assets will also reduce revenue there.
However, parts of Morgan Stanley’s operations are expected to benefit. Bond traders expect good results, thanks to volatility in commodities and interest rates.
The bank’s shares are down 19% this year through Thursday, keeping better than the 25% drop in the KBW Bank Index.
Wells Fargo and Citigroup Also scheduled to report the results on Friday, then Bank of America on Monday and Goldman Sachs on Tuesday.
This story is evolving. Please check back for updates.
