Morgan Stanley | $MS Stock | Shares Rise as Q3 Earnings Top Estimates

Morgan Stanley

Morgan Stanley (NYSE: MS)


Morgan Stanley shares rallied 2.6% to $44.60 in premarket trading on Tuesday after the investment bank revealed better-than-expected third-quarter revenue and profit that was above Wall Street expectations.

Shares of the New York-based lender have gone down nearly 17% since the beginning of the year.

MS Earnings & Outlook

For the quarter ended June 2018, the bank posted a profit of $2.11 billion, up from $1.78 billion in the year-ago period. The company said it had earnings of $1.17 per share compared with $0.93 per share in the earlier-year quarter, and ahead of analysts’ consensus of $1.01 per share.

Revenue jumped $12.56 billion during the quarter, above analysts’ estimates of $9.54 billion. Meanwhile, institutional securities revenue rose 13% to $4.93 billion surpassing analysts’ consensus of $4.59 billion as wealth management revenue climbed 4% to $4.40 billion, and ahead $4.36 billion expectations.

Morgan Stanley CEO Comments

James P. Gorman, Chairman and Chief Executive Officer, commented, “In the first half of the year, we produced strong results across the franchise. Despite the seasonal summer slowdown in the third quarter, we reported solid revenue and earnings growth demonstrating the stability of the franchise. Year to date, we have produced an ROE of 13% and ROTCE of 15%. We remain well positioned and optimistic for the remainder of the year.”

Morgan Stanley Company Profile

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. The company operates through three segments: Institutional Securities, Wealth Management, and Investment Management.

The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance.

This segment also provides sales and trading services, such as sales, financing, and market-making services in equity securities and fixed income products consisting of foreign exchange and commodities, as well as prime brokerage services; corporate loans, commercial and residential mortgage lending, and asset-backed lending; financing for equities and commodities customers; loans to municipalities; and investment and research services.

The Wealth Management segment offers various financial services and solutions covering brokerage and investment advisory services, financial and wealth planning services, annuity and insurance products, credit and other lending products, and banking and retirement plan services to individual investors and small to medium-sized businesses/institutions.

The Investment Management segment provides various investment strategies and products comprising equity, fixed income, liquidity, and alternative/other products to defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, and third-party fund sponsors and corporations through a network of institutional and intermediary channels. Morgan Stanley was founded in 1924 and is headquartered in New York, New York. – Yahoo Finance