Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Morgan Stanley    MS

MORGAN STANLEY

(MS)
  Report
Delayed Quote. Delayed Nyse - 02/14 04:03:45 pm
55.84 USD   -0.16%
02/15Citigroup CEO's Pay Remains at $24 Million -- WSJ
DJ
02/14Citigroup Keeps CEO Michael Corbat's Pay at $24 Million
DJ
02/14Royal Dutch Shell plc Transaction In Own Shares
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Morgan Stanley Raises The Bar -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
01/17/2020 | 02:48am EST

By Liz Hoffman

Morgan Stanley on Thursday posted record annual revenue and profit and set financial targets higher.

The firm capped off a mixed week for big U.S. banks, which reported mostly strong fourth-quarter earnings during a period marked by a Federal Reserve interest-rate cut and fierce global tensions.

JPMorgan Chase & Co. and Citigroup Inc. sailed through, while Goldman Sachs Group Inc. and Wells Fargo & Co. took big legal charges that dragged down profits.

Morgan Stanley's fourth-quarter earnings of $2.2 billion, or $1.30 a share, on $10.9 billion in revenue topped expectations of analysts polled by FactSet.

For the full year, it posted $9 billion in profit and a record $41.4 billion in revenue.

Shares rose 6.6%, their biggest one-day jump since the day after the 2016 election.

Contributions came from all four of its major businesses -- investment banking, trading, wealth management and asset management -- and lower taxes. Costs rose, in part because of $124 million in severance paid to thousands of bankers and traders let go last month, and a private-equity investment in Asia delivered a one-time gain.

Morgan Stanley's return on tangible equity, a measure of profitability, was 12.9% for the year, excluding one-time tax benefits.

On Thursday, Chief Executive James Gorman set a new goal of 13% to 15% by 2021 and as high as 17% in the future, a level currently achieved only by JPMorgan among major U.S. banks.

He also set new targets for firmwide expenses and profit in the retail brokerage.

Now in his 10th year, Mr. Gorman -- a no-nonsense Australian who pledged $1 million last week to aid in wildfire relief there -- is repeating a cycle that has worked well for him. Set modest financial targets, hit them, then inch the goal posts higher.

For years, Mr. Gorman has sounded impatient with analysts who pestered him for new targets.

On Thursday, he compared them with "kids in the back seat of the car, asking 'when are we going to get there?' Well, we kind of got there," he said. "There's no compelling reason, with normal economic growth and expense discipline...why these returns shouldn't be achievable."

He has lately sounded acquisitive, eager to use the goodwill he has accumulated with investors and regulators to strike a deal.

He tested the waters in Washington last year by acquiring Solium, a startup that manages stock for employees. Helping his cause now: Morgan Stanley shares are up 25% since Sept. 30, which makes them a better currency.

A likely area of expansion is in asset management, where Morgan Stanley is smaller and nichier than peers.

With $550 billion in assets, it is undersized in fixed-income offerings and has sat out the passive exchange-traded fund wave entirely -- consistent with Mr. Gorman's broader view in money management that people pay for expertise, not automation.

That view is being tested, as robo advisers court younger investors and funds that mirror the market are bigger than those trying actively to beat it.

Wealth managers such as Morgan Stanley and Merrill Lynch are also likely to face new competition as bulked-up discount brokerages try to replace trading commissions, which have fallen to near zero, with advisory fees.

Mr. Gorman is betting his firm's sheer size -- retail client assets rose $135 billion to $2.7 trillion in the fourth quarter -- and belated rollout of a digital platform will sustain it.

The wealth division is integrating Solium, which manages the share compensation for one million employees at thousands of companies, though so far has converted just 5,000 of them into wealth-management clients.

Morgan Stanley's investment-banking fees rose 11%, its best fourth quarter in a decade. The firm said a surge in initial public offerings in Asia helped offset a decline in merger fees.

Trading revenue rose 28%, compared with gains of 55% at JPMorgan and 33% at Goldman Sachs.

The gains at all three firms look unusually large because the year-earlier period, in late 2018, was a particularly bad one for bank trading desks.

"We didn't see the typical late-in-the-year slowdown in the markets this year," Chief Financial Officer Jonathan Pruzan said in an interview.

Its asset-management division had a record quarter, helped by a six-year-old investment in a Chinese baby-food company that delivered a big one-time gain.

Corrections & Amplifications Morgan Stanley's asset-management arm posted a full-year profit of $985 million. An earlier version of this article incorrectly said that profit was for the fourth quarter. (Jan. 16, 2020)

Annual profit doubled from a year earlier, to $985 million, and the launch of new credit products helped bring in fresh money.

Write to Liz Hoffman at liz.hoffman@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CITIGROUP INC. -0.27% 78.79 Delayed Quote.-1.38%
GOLDMAN SACHS GROUP INC. -0.53% 237.08 Delayed Quote.3.66%
JPMORGAN CHASE & CO. -0.30% 137.46 Delayed Quote.-1.09%
MORGAN STANLEY -0.16% 55.84 Delayed Quote.9.41%
WELLS FARGO & COMPANY 0.21% 48.22 Delayed Quote.-10.37%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on MORGAN STANLEY
02/15Citigroup CEO's Pay Remains at $24 Million -- WSJ
DJ
02/14Citigroup Keeps CEO Michael Corbat's Pay at $24 Million
DJ
02/14Royal Dutch Shell plc Transaction In Own Shares
DJ
02/14Lion Air to decide on IPO plans by month-end - sources
RE
02/14Mom and Pop Millionaires Are Driving Blackstone's Growth
DJ
02/13MORGAN STANLEY : rates AMP as Equal-weight
AQ
02/13MORGAN STANLEY : rates ASX as Equal-weight
AQ
02/13MORGAN STANLEY : rates CTX as Equal-weight
AQ
02/13MORGAN STANLEY : rates WPL as Equal-weight
AQ
02/13Tesla seeks to tap into stock surge with $2 billion share sale
RE
More news
Financials (USD)
Sales 2020 41 977 M
EBIT 2020 11 130 M
Net income 2020 8 407 M
Debt 2020 141 B
Yield 2020 2,69%
P/E ratio 2020 10,3x
P/E ratio 2021 9,36x
EV / Sales2020 5,47x
EV / Sales2021 5,32x
Capitalization 89 009 M
Chart MORGAN STANLEY
Duration : Period :
Morgan Stanley Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MORGAN STANLEY
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 61,60  $
Last Close Price 55,84  $
Spread / Highest target 39,7%
Spread / Average Target 10,3%
Spread / Lowest Target -19,4%
EPS Revisions
Managers
NameTitle
James Patrick Gorman Chairman & Chief Executive Officer
Jonathan M. Pruzan Chief Financial Officer & Executive Vice President
Robert Rooney Head-Technology
Hutham S. Olayan Independent Director
Robert H. Herz Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
MORGAN STANLEY9.41%89 009
GOLDMAN SACHS GROUP INC.3.66%83 947
THE CHARLES SCHWAB CORPORATION-0.69%60 671
CITIC SECURITIES COMPANY LIMITED-10.87%37 231
HUATAI SECURITIES CO., LTD.-9.21%22 649
NOMURA HOLDINGS, INC.2.16%15 601