James Gorman, chief executive officer of Morgan Stanley, fixes his jacket during a Bloomberg Television interview on the sidelines of the Morgan Stanley China Summit in Beijing, China, on Thursday, June 1, 2017.

Giulia Marchi | Bloomberg | Getty Images

Morgan Stanley is set to report third-quarter earnings before the opening bell on Thursday.

Here’s what Wall Street expects:

  • Earnings: $1.11 a share, 5% lower than a year earlier, according to Refinitiv.
  • Revenue: $9.6 billion, 2.8% lower than a year earlier
  • Wealth management: $4.39 billion, according to FactSet
  • Trading: Equities $1.94 billion, Fixed Income $1.11 billion

Lower interest rates, stock markets that traded sideways and mixed conditions on Wall Street may combine for an uninspired quarter at Morgan Stanley.

Given that backdrop, analysts will scrutinize how the bank is controlling expenses amid a lackluster outlook for revenue.

Chief Executive Officer James Gorman has helped to diversify Morgan Stanley away from trading and advisory businesses with his emphasis on wealth management, but the bank still has sizable Wall Street operations.

Morgan Stanley shares have climbed 8.1% this year before Thursday, compared to the 17% gain of the KBW Bank Index.

Morgan Stanley is the last of the big six banks to report earnings. Lenders with large retail operations generally outperformed in the quarter, led by J.P. Morgan Chase and Bank of America. Goldman Sachs missed on profit as investment banking revenue fell, and the firm took writedowns on Uber and WeWork stakes.

This story is developing. Please check back for updates.

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