Q2 Earning preview – MS
By: Ahura Chalki
Market analyst – IFC Markets
One of the leading banks in the global financial market, Morgan Stanly (MS), will publish its earnings for Q2 later today before the market opens. The report will be for the fiscal quarter ending June 2021. According to Zacks Investment Research, based on six analysts’ forecasts, the EPS estimate is $1.63; it was 2.04 for the same quarter last year. Zaks Ranking is 3 (Hold) for this asset.
While it has been beating the estimates at all past four quarters, Yahoo Finance’s ranking for that is Buy!
In the report, besides EBP, we have to check the outlook for the next quarter and the second half of 2021. Also, I need to mention that same as other leading US banks, after the positive stress test results by the Federal Reserve, announced the Share repurchase plan by 12B, which is going to be operated in the next four quarters.
On the revenue front, even though if it is stronger than the second quarter of 2019, still lower than Q2 2020 by almost 20%.
Technically, despite the decrease after touching an all-time high, it is still in a clear uptrend. Trading above 100 EMA, ParabolicSAR dots, and OBV trend line support the current uptrend, especially with the RSI at 67. A positive report is expected to help the market bulls and help the asset break above previous highs at $94.40 and then attack to $100.
On the flip side, breaching under PP(89.80) can open the doors for lower numbers, which is so unlikely now.
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