Banking, finance, and taxes
Does This Feel Like a Record Quarter for Morgan Stanley?
Published:
Last Updated:
Morgan Stanley (NYSE: MS) released its first-quarter earnings report before the markets opened on Wednesday. The investment bank said that it had $1.45 in earnings per share (EPS) on $11.1 billion in revenue, which compares with consensus estimates from Thomson Reuters of $1.25 in EPS on revenue of $10.32 billion. The same period of last year reportedly had EPS of $1.00 and $9.74 billion in revenue.
During the quarter, Morgan Stanley reported a record profit, helped by a lower tax bill and a boost in revenue from last quarter’s volatile markets.
In terms of its segments, the firm reported its first-quarter results as follows:
- Institutional Securities net revenues were $6.1 billion reflecting strength across our sales and trading franchise; Investment Banking Ranked #1 in Global Announced and Completed M&A and Global Equity.
- Wealth Management reported net revenues of $4.4 billion, record pre-tax income of $1.2 billion and a pre-tax margin of 26.5%; Strong fee-based asset flows of $18.2 billion for the quarter.
- Investment Management net revenues were $718 million reflecting higher management fees; Continued positive long-term net flows in the quarter.
Book value and tangible book value per common share were $39.19 and $34.04, respectively. Also Morgan Stanley’s Common Equity Tier 1 and Tier 1 risk-based capital ratios under the fully phased-in Standardized Approach were 15.6% and 17.8%, respectively.
The bank did not issue any guidance in the report, but consensus estimates call for $1.13 in EPS on $10.08 billion in revenue for the second quarter. For the 2018 full year, the consensus estimates are $4.52 in EPS and $39.89 billion in revenue.
James P. Gorman, board chair and chief executive, commented:
We delivered very strong results this quarter, with record revenues and net income – and an ROE above our target range. Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment.
Shares of Morgan Stanley closed Tuesday at $53.24, with a consensus analyst price target of $61.17 and a 52-week range of $40.43 to $59.38. Following the announcement, the stock was up 2.5% at $54.58 in early trading indications Wednesday.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
