Morgan Stanley’s share price dips after earnings

US financial services company, Morgan Stanley (NYSE: MS), announced Q4 2023 and full year financial results before the US open on Tuesday.

Morgan Stanley reported revenue of $12.896 billion for the previous quarter, narrowly beating analyst estimate of $12.773 billion.

Earnings per share (EPS) fell well short of Wall Street expectations at $0.85 vs. $1.074 per share expected.

The company achieved revenue for $54.1 billion in 2023. EPS reached $5.18 per share.

<strong>Company overview</strong>
<ul>
<li>Founded: 1935</li>
<li>Headquarters: New York, United States</li>
<li>Number of employees: 80,257 (2022)</li>
<li>Industry: Financial services</li>
<li>Key people: James P. Gorman (Executive Chairman), Ted Pick (CEO), Andy Saperstein (Co-President), Dan Simkowitz (Co-President), Sharon Yeshaya (CFO)</li>
</ul>
<strong>CEO commentary</strong>

“In 2023, the Firm reported a solid ROTCE* against a mixed market backdrop and a number of headwinds. We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are focused on achieving our long-term financial goals and continuing to deliver for shareholders,” CEO of Morgan Stanley, Ted Pick, commented on the results in a statement to shareholders.

*Return on tangible equity

<strong>Stock reaction</strong>

<img class=”alignnone size-full wp-image-691745″ src=”https://www.gomarkets.com/wp-content/uploads/2024/01/k1.png” alt=”” width=”660″ height=”459″ />

The stock was down by over 4% after the announcement of the latest results. Shares were trading at $85.80 a share – the lowest level in over a month.

<strong>Stock performance</strong>
<ul>
<li>5 day: -7.92%</li>
<li>1 month: -5.13%</li>
<li>3 months: +9.36%</li>
<li>Year-to-date: -7.67%</li>
<li>1 year: -6.07%</li>
</ul>
<strong>Morgan Stanley stock price targets</strong>
<ul>
<li>HSBC: $96</li>
<li>JP Morgan: $94</li>
<li>UBS Group: $95</li>
<li>Bank of America: $100</li>
<li>Barclays: $116</li>
<li>Royal Bank of Canada: $85</li>
<li>Goldman Sachs: $100</li>
<li>Societe Generale: $80</li>
<li>BNP Paribas: $85</li>
<li>Oppenheimer: $103</li>
<li>Evercore: $97</li>
</ul>
Morgan Stanley is the 88th largest company in the world with a market cap of $141.14 billion.

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<strong>Why trade during extended hours?</strong>
<ul>
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<em>Sources: Morgan Stanley, TradingView, MarketWatch, MarketBeat, CompaniesMarketCap</em>