MORGAN STANLEY Reports Q2 FY2023 Earnings Results on July 18th
July 26, 2023
🌥️Earnings Overview
On July 18, 2023, Morgan Stanley ($NYSE:MS) reported their earnings for the second quarter of Fiscal Year 2023 (ending on June 30, 2023). The total revenue for the period was USD 12.6 billion, showing a 2.7% increase from the second quarter of Fiscal Year 2022. Unfortunately, net income decreased 12.8% to USD 2.2 billion in comparison with the same period last year.
Stock Price
MORGAN STANLEY reported their financial results for the second quarter of FY2023 on Tuesday, July 18th. On the same day, the company’s stock opened at $87.5 and closed at $91.9, a 6.4% increase from its prior closing price of 86.4. MORGAN STANLEY has reported positive financial results for the past several quarters, but this marks the company’s largest year-on-year growth in net income and operating revenues since the start of FY2023. The company’s strong performance in the second quarter should bolster investor confidence and continue to drive share prices upwards. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Morgan Stanley. More…
| Total Revenues | Net Income | Net Margin |
| 50.26k | 9.49k | 20.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Morgan Stanley. More…
| Operations | Investing | Financing |
| -16.5k | -11.63k | 22.71k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Morgan Stanley. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.2M | 1.1M | 60.37 |
Key Ratios Snapshot
Some of the financial key ratios for Morgan Stanley are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | – | – |
| FCF Margin | ROE | ROA |
| -39.1% | 7.9% | 0.7% |
Analysis
GoodWhale recently conducted an analysis of MORGAN STANLEY‘s financials, using our proprietary Star Chart system. Based on the results of the assessment, we’ve concluded that MORGAN STANLEY has a low health score of 3/10 with regard to its cashflows and debt, suggesting that it is less likely to be able to safely ride out any crisis without the risk of bankruptcy. Additionally, MORGAN STANLEY is classified as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Given the company’s financials, this type of company may be of particular interest to value investors or those seeking a steady dividend yield. Specifically, MORGAN STANLEY is strong in dividend, medium in growth and weak in asset, profitability. While there are certainly risks associated with investing in this type of company, it may be a good option for those looking for steady returns and a reliable income stream. More…
Peers
Morgan Stanley is an American multinational investment bank and financial services company headquartered in New York City. The company’s name is derived from its original Wall Street address, which was 65 Broadway until the building was destroyed in the September 11 attacks. Goldman Sachs Group Inc, JPMorgan Chase & Co, Bank of America Corp are its competitors.
– Goldman Sachs Group Inc ($NYSE:GS)
Goldman Sachs Group Inc. is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment banking, asset management, and securities services. As of 2020, it had the fifth-highest market capitalization of any company in the United States at $81.6 billion. Goldman Sachs has a return on equity of 9.0% as of 2022. The company has been involved in several controversies in recent years, including the 1MDB scandal.
– JPMorgan Chase & Co ($NYSE:JPM)
JPMorgan Chase & Co is an investment bank and financial services company headquartered in New York City. The company has a market capitalization of $373.1 billion as of 2022. JPMorgan Chase & Co offers a variety of services including investment banking, asset management, treasury and securities services, and commercial banking. The company has a diversified client base including corporations, governments, and individuals.
– Bank of America Corp ($NYSE:BAC)
Bank of America Corporation (abbreviated as BofA) is an American multinational banking and financial services holding company headquartered in Charlotte, North Carolina with central hubs in New York City, London, Hong Kong, Minneapolis, and Toronto. It is the second largest bank holding company in the United States by assets. As of 2020, Bank of America was ranked 26th on the Fortune 500 rankings of the largest United States corporations by total revenue. The company serves clients in more than 150 countries. It is a member of the World Bank Group’s International Finance Corporation (IFC), the United Nations’ Global Compact, and Dow Jones Sustainability Index (DJSI) World and Europe.
Bank of America’s market cap is $287.93B as of 2022.
Summary
Morgan Stanley reported strong revenue figures for the second quarter of 2023, posting a 2.7% year-over-year increase to $12.6 billion. Despite this positive growth, net income dropped 12.8% to $2.2 billion compared to the prior year. Despite this, the stock price reacted positively on the news, indicating investor confidence in the company’s future prospects. For investors looking to invest in Morgan Stanley, it is important to understand how the company’s strategic decisions will affect its financial performance going forward.
Additionally, assessing Morgan Stanley’s strengths in terms of its market share, competitive position, and general financial health will help investors make informed decisions about the company’s potential.
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