NEW YORK (TheStreet) -- Morgan Stanley (MS) - Get Morgan Stanley Report shares are rallying 1.54% to $34.30 on Monday as the company is reportedly planning to trim 25% of its fixed-income jobs, according to Bloomberg.
This action will occur in the next two weeks across all regions.
The reduction of its fixed-income staff comes as the company during the third quarter saw bond-trading revenue tumble 42%.
This was one of the company's worst performances since the financial crisis, Reuters added.
Last month, Chief Executive James Gorman picked Ted Pick to oversee the company's entire trading business in order to facilitate better coordination between the firm's bond and equities desks.
Based in New York, Morgan Stanley provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide.
Separately, TheStreet Ratings team rates MORGAN STANLEY as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate MORGAN STANLEY (MS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strongest point has been its very decent return on equity which we feel should persist. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MORGAN STANLEY's earnings per share declined by 42.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MORGAN STANLEY increased its bottom line by earning $1.58 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($2.54 versus $1.58).
- MS, with its decline in revenue, slightly underperformed the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 10.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, MORGAN STANLEY's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for MORGAN STANLEY is currently lower than what is desirable, coming in at 29.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 12.02% trails that of the industry average.
- Net operating cash flow has significantly decreased to $490.00 million or 73.72% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: MS