A screen displays trading information for Morgan Stanley on the floor of the New York Stock Exchange (NYSE), January 19, 2022.

Brendon McDermide | Reuters

Morgan Stanley is ready to report first-quarter earnings before the opening hour on Thursday. Here’s what Wall Street expects:

  • Earnings: 68 1.68 per share, 23% lower than a year ago, according to Refinitiv
  • Revenue: $ 14.3 billion, 8.9% less than a year ago
  • Asset Management: 6.18 billion, according to StreetAccount
  • Trading: Equities 2.72 billion, fixed income $ 2.22 billion
  • Investment Banking: 1.74 billion

How well did Morgan Stanley’s traders and bankers navigate a difficult quarter? This is the question for New York-based banks, which receive about half of their revenue from trading and investment banking operations.

Wall Street banks have plunged into a sharp slump in consolidation-related advisory fees and a sharp fall in IPO activity in the first quarter, which sparked strong results last year. This change was triggered by the collapse of the stock market and Russia’s aggression in Ukraine, the forces that made the market less hospitable for deals and public lists.

The source of the remaining half of Morgan Stanley’s revenue, the bank’s huge asset management and investment management departments could better hold on, but analysts still expect the stock price to decline in the lower quarter.

– Contributed to CNBC’s Hugh Son Reporting.

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