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Morgan Stanley beats estimates despite earnings drop, DFS and State Street miss mark

EditorHari Govind
Published 2023-10-19, 12:06 p/m
© Reuters.
MS
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On Thursday, Morgan Stanley (NYSE:MS) reported a drop in Q3 earnings to $2.26 billion ($1.38/share) from last year's $2.49 billion ($1.47/share). The financial powerhouse, however, managed to surpass the average analyst estimate of $1.22/share, as reported by Thomson Reuters (TSX:TRI) (NYSE:TRI), indicating a better than expected performance. The bank also revealed a revenue growth of 2.2%, with this quarter's revenue reaching $13.27 billion, up from last year's $12.99 billion.

Although Morgan Stanley's earnings have declined, it's worth noting that the company is a prominent player in the Capital Markets industry according to InvestingPro Tips. Furthermore, the company has raised its dividend for 10 consecutive years, which is a positive sign for investors. However, investors should bear in mind that the company's net income is expected to drop this year.

Additionally, the InvestingPro data shows a P/E ratio of 12.98 and a revenue of $53.19 billion, which provides further insight into the company's financial situation. The company's market cap is currently $122.46 billion, which is a substantial figure in the industry.

Meanwhile, Discover Financial Services (NYSE:DFS) delivered Q3 earnings that fell short of estimates, with a net income drop to $647 million ($2.59/share) from $975 million ($3.56/share) last year. This underperformed the $3.18/share forecast by Thomson Reuters analysts. DFS reported a GAAP revenue surge of 16.4% to $4.04 billion from the previous year's $3.47 billion.

State Street Corp (NYSE:STT).'s Q3 earnings report also failed to meet expectations, showing a significant decrease from the previous year and failing to meet the $1.81 per share estimate by analysts, according to data corroborated by Thomson Reuters. Earnings dropped to $422 million or $1.25 per share from the preceding year's figure of $690 million or $1.80 per share. The report also marked a 9.1% revenue dip, with figures falling to $2.69 billion from last year's third quarter revenue of $2.96 billion.

For more in-depth analysis and tips like these, consider checking out InvestingPro's service, which offers further tips and real-time metrics for companies like Morgan Stanley. You can access this information and more at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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