Will Morgan Stanley (NYSE:MS) Continue Its Streak of Topping Expectations in 3Q Earnings Results?

Boston, MA 10/16/2014 (wallstreetpr) – Morgan Stanley (NYSE:MS) has consistently delivered better than expected earnings number in the last four quarters. Will it maintain its streak of winning the analysts’ predictions on earnings in the third quarter? The banking sector has been facing lot of litigation issues, and they also allocated enormous amount for it.

However, JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc (NYSE:C) and Bank of America Corp (NYSE:BAC) have all delivered solid quarterly earnings number. Their earnings came in above the Street analysts’ expectations. It naturally raises the expectations that Morgan Stanley would also likely follow the other three banks to deliver better than the expected results.

Earnings Results On Friday

Will Morgan Stanley (NYSE:MS) is scheduled to announce its financial results for the third quarter on October 17 before the market opens. It would also hold a conference call on the same day at 10.00 a.m. eastern time.

Key Factors For 3Q

If the trend of the second quarter continued, Morgan Stanley’s Institutional Securities division would continue to face pressure. Its results would also throw light on the client activity, which is expected to be low. Similarly, trading volume started to see some uptick only in September, and the overall picture remained somewhat soft.

Will Morgan Stanley (NYSE:MS) would also likely to have faced the pressure of a long-spell of low-interest rate conditions. As a result, its net interest income would not show any growth and remain muted. Any slower rate of loan demand would only add to its problem of earning more interest income.

Investment & Wealth Management

Morgan Stanley may benefit from Wealth Management, as well as investment management divisions. In the second quarter too, these two segments saved its performance. The trend is unlikely to have changed in the third quarter too.

These two divisions would not only likely to compensate the weakness in Institutional Securities segment but would also allow the company record a slender revenue growth. On average, Wall Street analysts’ expect Will Morgan Stanley (NYSE:MS) to report earnings of 54 cents a share on revenue of $8.17 billion. It represented 8% earnings growth on revenue uptick of 0.8%.