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On Wednesday, Morgan Stanley reported its Q3 earnings, revealing a 9% drop in profits to $2.41 billion from the previous year and a modest 2% revenue growth. With an EPS of $1.38, the bank managed to surpass profit expectations, beating LSEG’s estimated $1.28. The reported revenue was near-expected at $13.27 billion, as noted by InvestingPro. This news led to a 3.2% dip in premarket trading of Morgan Stanley’s shares, which were trading near their 52-week low according to InvestingPro data.
The bank’s bond and equity traders performed above expectations, generating revenues of $1.95 billion and $2.51 billion respectively. This helped offset underperformance in the wealth management division, which fell short of the $6.63 billion estimate by producing only $6.4 billion due to rising compensation costs. The investment banking division also missed its target of $1.11 billion, generating just $938 million because of a slump in mergers and IPO listings. Despite the challenges, InvestingPro Tips highlight that Morgan Stanley has been a prominent player in the Capital Markets industry.
In other corporate news from Wednesday, CEO James Gorman, who has successfully maintained stability at Morgan Stanley amidst rivals’ turbulence, announced plans to resign within a year last May. The board has narrowed down the search for his successor to three internal executives, marking the end of Gorman’s successful tenure.
In other earnings news on Wednesday, Procter & Gamble (P&G) announced its Q1 FY24 earnings, reporting a 17% YoY growth with $1.83 per share, surpassing the estimated $1.72 per share. The company’s sales increased by 6% YoY to $21.9 billion, exceeding the sales forecast of $21.6 billion, with organic sales also up by 7%. Following these results, P&G shares rose in pre-market trading.
Adjusting its FY24 outlook, P&G expects a 2-4% sales growth and predicts a 1-2% results impact due to currency exchange rate fluctuations. The company anticipates a 6-9% rise in diluted earnings per share, partially attributed to favorable commodity costs. PG stock currently holds a Moderate Buy consensus rating among analysts.
Looking ahead, Halliburton Company (NYSE:)’s Q3 earnings are due for release on October 24. Zacks Consensus Estimate projects the earnings to be 77 cents per share on $5.8 billion revenues. The firm outperformed in Q2 with a net income per share of 77 cents despite modest international sales, achieving an average earnings surprise of 6.2% over the past four quarters. The upcoming quarter is likely to witness a YoY bottom-line growth of 28.3% and a revenue rise of 9%. Yet, challenges such as a declining U.S. rig count and an anticipated 6.7% sales cost hike to $4.8 billion could affect results. Investors interested in more in-depth analysis and tips can find additional insights at InvestingPro, which features over 14 additional tips for companies like Morgan Stanley.
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