Here comes Morgan Stanley ...
Getty
Morgan Stanley is set to report fourth-quarter results at about 7 am Thursday.
It's the last to report of the big US banks. Its Wall Street competitors have each exceeded expectations thus far, despite taking sizable losses attributable to tax reform.
Analysts are expecting Morgan Stanley to produce adjusted earnings of $0.77 a share.
But they're expecting the firm to report a non-adjusted loss of $0.33 a share after accounting for an estimated $1.25 billion hit from the new tax law, primarily from deferred tax assets that declined in value.
Still, that's a much smaller one-time tax loss than competitors reported: JPMorgan earlier reported a $2.4 billion fourth-quarter loss, Citigroup a $22 billion loss, Bank of America a $2.9 billion loss, and Goldman Sachs a $4.4 billion loss.
Each of the banks has been buoyant about the long-term prospects of tax reform, however.
Here's what else analysts will be looking for from Morgan Stanley:
- Revenues of $9.24 billion
- Adjusted net income of $1.43 billion
- Like the rest of Wall Street, a decline in trading revenues - especially in fixed income. How will the results stack up with Goldman Sachs and other rivals?
- An increase in investment banking revenues
- Any exposure to Steinhoff International?
As a refresher, Steinhoff International is the scandal-wracked South African retailer that has been singlehandedly blowing a hole through Wall Street bank earnings, reappearing in the fourth-quarter announcements of major banks as the culprit for hundreds of millions in unexpected, one-time losses.
A group of Wall Street banks loaned money last year to an entity controlled by Christo Wiese, the former chairman of Steinhoff, and they subsequently sold off chunks of the loan to other banks. The deal went belly-up after Steinhoff stock cratered.
Will Morgan Stanley be on the hook for any substantial amount?
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market