Morgan Stanley (MS) reported impressive second-quarter financial results impacted by the E*TRADE acquisition. Net income applicable to shareholders came in at $3.5 billion or $1.85 per share, above consensus estimates of $1.65 per share. Last year, the financial services company delivered a net income of $3.2 billion, or $1.96 per diluted share, for the same period.
Net revenue came in at $14.8 billion compared to $13.7 billion reported in the same period last year, and above consensus estimates of $13.96 billion. Revenue and earnings growth affirm strong performance and contributions across Morgan Stanley’s core business segments and geographies.
CEO James Gorman stated, “The Firm delivered another very strong quarter, with contributions from all of our businesses. Our Wealth and Investment Management businesses attracted $120 billion in flows and Institutional Securities generated over $7 billion in revenues.”
According to the CEO, Morgan Stanley’s global franchise is well-positioned to drive further growth. (See Morgan Stanley stock charts on TipRanks)
Additionally, the bank has doubled its dividend offering and announced a $12 billion buyback program over the coming 12 months as part of an effort to move excess capital to shareholders.
Yesterday, Oppenheimer analyst Chris Kotowski reiterated a Buy rating on the stock with a $105 price target of implying 13.35% upside potential to current levels. The Buy rating comes on the back of the financial service company delivering Q2 results that topped estimates.
Consensus among analysts is a Strong Buy based on 14 Buys and 2 Holds. The average Morgan Stanley price target of $100.44 implies 8.43% upside potential to current levels.
MS scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.