Sunday, July 29, 2012

Morgan Stanley Earnings Review: Losing Streak Snapped!

Morgan Stanley reported QE June 2012 financial results on Thursday, July 19

Any earnings per share reported by the volatile Morgan Stanley is an improvement, and trend reversal, regardless of whether it is a beat or miss. The current Q2 2012 earnings per share of $0.29 serves that purpose. Morgan Stanley has reported losses per share in 2 of the past 3 quarters, in 3 of the past 5 quarters, and in 4 of the past 8 quarters.

Morgan Stanley does this to themselves and apparently to their clients. CEO James Gorman noted 2 quarters ago that MS continues "addressing a number of outstanding strategic and legacy issues." I guess that's one way to say it. Another way to say it is: we lie, cheat, and steal. The general public is not as familiar with Morgan Stanley as they are Goldman Sachs in the Wall Street Banksters syndicate. They are just as criminally inclined.

Metric, QoQ Change, YoY Change
Total Assets: $753.76 billion, -3%, -9%
Net Revenues: $6.95 billion, 0%, -25%
Net Income: $591 million, +729%, -50%
Earnings per Share: $0.29, +583%, -176%

At QE 6-30-12 I have upgraded Morgan Stanley to an "E+" from an "F-" at the prior QE 3-31-12. Previously at QE 12-31-11, the rating had been "D-". This is on a scale of A+ to G-. The median rating is "D" and the average rating was "C" at QE 3-31-12. Financial position strength is weighted more than financial performance. The QE 3-31-12 bank ratings review is here.

James P. Gorman, Chairman and Chief Executive Officer, said, “Although global economic uncertainty remains a headwind, we are proactively positioning the Firm for success. Our businesses showed resilience in key areas during the quarter, and we made progress against strategic goals. Despite muted volumes, Investment Banking maintained its industry-leading rankings. In Global Wealth Management, we increased our pre-tax margin to 12 percent in an environment marked by investor caution, and we integrated substantially all of our technology systems, which should bring additional value to our clients. We continue to be focused on taking the necessary steps to deliver strong returns for our shareholders.”


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