Morgan Stanley (MS) Posts Q2 adj.-EPS of 91c; 60c ex-Tax Benefit
(Updated - July 17, 2014 7:19 AM EDT)
Morgan Stanley (NYSE: MS) reported Q2 EPS of $0.60, versus the analyst estimate of $0.58. Revenue for the quarter came in at $8.5 billion versus the consensus estimate of $8.41 billion. Results for the quarter included a net discrete tax benefit of $609 million or $0.31 per diluted share, principally related to the remeasurement of reserves and related interest.
Income from continuing operations applicable to Morgan Stanley was $1.9 billion, or $0.94 per diluted share, compared with income of $1.0 billion, or $0.43 per diluted share, for the same period a year ago.
Excluding DVA, income from continuing operations applicable to Morgan Stanley was $1.9 billion, or $0.91 per diluted share, compared with income of $900 million, or $0.37 per diluted share, a year ago.
Results also include a $609 million discrete tax benefit, or about $0.31 per share.
That puts Q2 EPS at $0.60 for Morgan Stanley.
Compensation expense was $4.2 billion compared with $4.1 billion a year ago. Non-compensation expenses of $2.4 billion decreased from $2.6 billion a year ago reflecting lower litigation expenses.
Business Overview
- Institutional Securities net revenues excluding DVA were $4.2 billion11 reflecting continued strength in Investment Banking and Equity sales and trading, and lower performance in Fixed Income & Commodities sales and trading due to lower market activity.
- Wealth Management net revenues were $3.7 billion and pre-tax margin was 21%.5 Fee based asset flows for the quarter were $12.5 billion. Total client assets were a record $2.0 trillion at quarter end.
- Investment Management reported net revenues of $692 million with assets under management or supervision of $396 billion.
James P. Gorman, Chairman and Chief Executive Officer, said, “Our quarterly results demonstrated solid performance, despite a muted operating environment. We are seeing momentum across our businesses, with particular strength in Investment Banking, Equity Sales & Trading and Wealth Management – where profit margins hit 21% for the first time since the founding of the JV and assets entrusted to us by clients reached $2 trillion. We also continued to be disciplined on expenses, while focusing on delivering higher returns.”
For earnings history and earnings-related data on Morgan Stanley (MS) click here.