Morgan Stanley (MS) Impresses Investors with Q2 Results; Loss Narrower than Expected
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Price: $214.20 +3.25%
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Information processing and communications: 456M
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Financial Fact:
Information processing and communications: 456M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Morgan Stanley (NYSE: MS) is pushing higher early Thursday, following strong second-quarter numbers that continued the rally financial stocks have been seeing this quarter.
Revenue popped 16.3 percent to $9.282 billion, compared with $7.963 billion in the same period last year.
Morgan Stanley swung to a quarterly loss of 38 cents per share, compared with net income of 50 cents per share last year.
Overall, the Wall Street was expecting revs of $8.08 billion and a loss of 62 cents per share.
Morgan Stanley's Tier 1 capital ratio, under Basel I, was approximately 16.8 percent and Tier 1 common ratio was approximately 14.6 percent. Tangible book value fell from $28.02 to $26.61 over the quarter.
Notably, trading revs increased about 4 percent to $3.485 billion, though many on the Street were looking for more flattish results.
James P. Gorman, President and Chief Executive Officer, said, "While global markets remained challenging this quarter, the Firm delivered higher year-over-year revenues across our three major business segments. Within Institutional Securities, our premier investment-banking franchise ranked #1 in global completed M&A during the quarter and had the highest second-quarter revenues since 2007. Equities achieved further client gains as revenues rose despite a fall in overall market volumes, while Fixed Income showed continued progress and Wealth Management delivered its highest revenues and FA productivity since the MSSB joint venture was formed and had positive flows, as did Asset Management. With respect to costs, our re-engineering initiative and additional expense management efforts underscore our focus to ensure that shareholders benefit from our progress. We also completed the previously announced preferred stock conversion with MUFG, resulting in a one-time, non-cash charge this quarter but removing a significant yearly dividend payment and boosting the Firm’s Tier 1 common ratio to an industry-leading level. With this additional capital cushion and the clear momentum across our main businesses, we are well positioned to help our clients navigate the constantly changing markets and create additional value for our shareholders."
The financial firms is trading nearly 6 percent better pre-market today.
Revenue popped 16.3 percent to $9.282 billion, compared with $7.963 billion in the same period last year.
Morgan Stanley swung to a quarterly loss of 38 cents per share, compared with net income of 50 cents per share last year.
Overall, the Wall Street was expecting revs of $8.08 billion and a loss of 62 cents per share.
Morgan Stanley's Tier 1 capital ratio, under Basel I, was approximately 16.8 percent and Tier 1 common ratio was approximately 14.6 percent. Tangible book value fell from $28.02 to $26.61 over the quarter.
Notably, trading revs increased about 4 percent to $3.485 billion, though many on the Street were looking for more flattish results.
James P. Gorman, President and Chief Executive Officer, said, "While global markets remained challenging this quarter, the Firm delivered higher year-over-year revenues across our three major business segments. Within Institutional Securities, our premier investment-banking franchise ranked #1 in global completed M&A during the quarter and had the highest second-quarter revenues since 2007. Equities achieved further client gains as revenues rose despite a fall in overall market volumes, while Fixed Income showed continued progress and Wealth Management delivered its highest revenues and FA productivity since the MSSB joint venture was formed and had positive flows, as did Asset Management. With respect to costs, our re-engineering initiative and additional expense management efforts underscore our focus to ensure that shareholders benefit from our progress. We also completed the previously announced preferred stock conversion with MUFG, resulting in a one-time, non-cash charge this quarter but removing a significant yearly dividend payment and boosting the Firm’s Tier 1 common ratio to an industry-leading level. With this additional capital cushion and the clear momentum across our main businesses, we are well positioned to help our clients navigate the constantly changing markets and create additional value for our shareholders."
The financial firms is trading nearly 6 percent better pre-market today.
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