MS’s client assets surged, but profits didn’t keep up with last quarter
New client assets hit a record, but after the past couple of days, I’m more inclined to think the U.S.-listed MS will continue to pull back. Wealth Management earned a little more, but the company’s net income was about 12% lower than last quarter, and the stock was still falling in premarket trading after today’s earnings report.
MS reported third-quarter net income attributable to the company of $4.909 billion, down from $5.581 billion last quarter. It was still about 6.5% higher than a year earlier, so it’s not as if the business is weakening across the board. But after a record second quarter, revenue from both equity trading and fixed income fell short in the third quarter. For now, growth in Wealth Management hasn’t made up for the decline in revenue from other businesses.
Wealth Management’s asset management revenue reached $5.544 billion, up about 16% from a year earlier. Fees did increase, which is one part of this earnings report that I’m pleased with. But improvement in one business hasn’t yet helped the company as a whole earn more than it did last quarter.
The stock closed yesterday at $186.64. After tonight’s CPI release, it slipped to around $184 in premarket trading. That shouldn’t be taken as tonight’s closing price. If it can get back to around $190 and hold there, I’d be more inclined to think the rebound will continue. That level is close to Friday’s and Monday’s closing prices, so getting back there would recover the recent losses.
The September CPI just released rose 0.6% month over month, driven mainly by energy, while core CPI was still up 0.3% month over month. I don’t yet see clear signs that inflation is easing, and interest-rate pressures could continue to weigh on MS’s valuation. But this report can’t determine whether rates will be raised at the next meeting, nor can it explain the entire premarket drop tonight.
The company added $232.4 billion in client assets this quarter, more than half of which was related to IPOs. The report separately listed $80.5 billion in fee-based asset flows. These figures use different definitions, so the full $232.4 billion shouldn’t be counted as assets in fee-paying accounts. I want to see how much of these IPO-related assets stick around and whether they can continue generating management fees.
#MS #美股 #Earnings
New client assets hit a record, but after the past couple of days, I’m more inclined to think the U.S.-listed MS will continue to pull back. Wealth Management earned a little more, but the company’s net income was about 12% lower than last quarter, and the stock was still falling in premarket trading after today’s earnings report.
MS reported third-quarter net income attributable to the company of $4.909 billion, down from $5.581 billion last quarter. It was still about 6.5% higher than a year earlier, so it’s not as if the business is weakening across the board. But after a record second quarter, revenue from both equity trading and fixed income fell short in the third quarter. For now, growth in Wealth Management hasn’t made up for the decline in revenue from other businesses.
Wealth Management’s asset management revenue reached $5.544 billion, up about 16% from a year earlier. Fees did increase, which is one part of this earnings report that I’m pleased with. But improvement in one business hasn’t yet helped the company as a whole earn more than it did last quarter.
The stock closed yesterday at $186.64. After tonight’s CPI release, it slipped to around $184 in premarket trading. That shouldn’t be taken as tonight’s closing price. If it can get back to around $190 and hold there, I’d be more inclined to think the rebound will continue. That level is close to Friday’s and Monday’s closing prices, so getting back there would recover the recent losses.
The September CPI just released rose 0.6% month over month, driven mainly by energy, while core CPI was still up 0.3% month over month. I don’t yet see clear signs that inflation is easing, and interest-rate pressures could continue to weigh on MS’s valuation. But this report can’t determine whether rates will be raised at the next meeting, nor can it explain the entire premarket drop tonight.
The company added $232.4 billion in client assets this quarter, more than half of which was related to IPOs. The report separately listed $80.5 billion in fee-based asset flows. These figures use different definitions, so the full $232.4 billion shouldn’t be counted as assets in fee-paying accounts. I want to see how much of these IPO-related assets stick around and whether they can continue generating management fees.
#MS #美股 #Earnings