Morgan Stanley (MS) Earnings: Results Only A Mother Could Love

Banking, finance, and taxes

Published: July 22, 2009 7:12 am

Last Updated: April 28, 2020 2:00 am

mack Morgan Stanley’s (MS) stock fell 5% the moment it released its earnings for the last quarter. The firm was lucky that the drop did not become a plunge.

Morgan reported a loss from continuing operations applicable to Morgan Stanley for the second quarter of $159 million, or $1.37 per diluted share compared with income from continuing operations applicable to Morgan Stanley of $689 million in the period last year.

Net revenues for the quarter were $5.4 billion, compared with $6.1 billion in last year’s second quarter.

Some of the highlights of the quarter included fixed income sales and trading net revenues of $1.0 billion reflect a loss of $1.3 billion related to the tightening of MS debt-related credit spreads which was partly offset by strong results in investment grade and distressed debt trading.

Equity sales and trading net revenues of $0.7 billion reflect a loss of $0.8 billion related to the tightening of MS debt-related credit spreads. Asset Management results reflect losses in the Merchant Banking business, primarily driven by real estate. The firm’s results reflect net losses on investments in real estate of $0.7 billion, amidst the industry-wide decline in this market.

Douglas A. McIntyre

Cash Back Credit Cards Have Never Been This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.