Sentiments on negative side for Morgan Stanley’s Q2 EPS

Morgan Stanley (NYSE:MS) Q2 consensus EPS estimate is $1.61 (-14.8% Y/Y) and consensus income estimate is $13.53B (-8.6% Y/Y).

Morgan Stanley mentioned its analysts who cowl banks and shopper finance are in line or under consensus on ~80% of the shares in its protection for Q2.

CFRA Analyst Kenneth Leon does not anticipate any of the biggest banks to publish Y/Y EPS progress in Q2.

Wells Fargo Analyst Mike Mayo lowered the EPS estimates on the U.S. banks whilst he sees higher instances forward for the sector in H2, attributable to capital markets exercise and present anticipated credit score loss reserve builds.

Regardless of a usually wholesome elementary backdrop, sentiment has change into extra adverse for banks in latest weeks, reflecting common macro fears and the group being crowded and consensus earlier this 12 months, a report by Baird Fairness Analysis mentioned.

The financial institution is scheduled to announce Q2 earnings outcomes on Thursday, July 14th, earlier than market open.

Over the past 2 years, MS has crushed EPS estimates 100% of the time and income estimates 88% of the time.

Over the past 3 months, EPS estimates have seen 3 upward revisions and eight downward revisions. Income estimates have seen 1 upward revision and 12 downward revisions.

Morgan Stanley was among the many relative winners within the Federal Reserve’s pressured capital buffer outcomes, Jefferies Analyst Ken Usdin had mentioned in a observe.

The financial institution, topic to a stress capital buffer of 5.8%, up from 5.7% a 12 months in the past, elevated its quarterly dividend by 11% to $0.775 per share from the present $0.70 beginning in Q3 and licensed a brand new $20B share repurchase program.