Morgan Stanley (NYSE: MS) reported Q3 EPS of $0.65, versus the analyst estimate of $0.54. Revenue for the quarter came in at $8.9 billion versus the consensus estimate of $8.16 billion.

EPS Breakdown:

Excluding DVA, income from continuing operations applicable to Morgan Stanley was $1.6 billion, or $0.77 per diluted share*, compared with income of $1.0 billion, or $0.50 per diluted share, a year ago.

For the current quarter, income from continuing operations applicable to Morgan Stanley was $1.7 billion, or $0.84 per diluted share, compared with income of $889 million, or $0.44 per diluted share**, for the same period a year ago. The current quarter included a net discrete tax benefit of $237 million or $0.12 per diluted share.

* Earnings (loss) per diluted share amounts, excluding DVA, are non-GAAP financial measures that the Firm considers useful for investors to allow better comparability of period-to-period operating performance. Such exclusions are provided to differentiate revenues associated with Morgan Stanley borrowings, regardless of whether the impact is either positive, or negative, that result solely from fluctuations in credit spreads and other credit factors. The reconciliation of earnings (loss) per diluted share from continuing operations applicable to Morgan Stanley common shareholders and average diluted shares from a non-GAAP to GAAP basis is as follows (shares and DVA are presented in millions):

** (Includes preferred dividends and other adjustments related to the calculation of earnings per share for the third quarter of 2014 and 2013 of approximately $64 million and $26 million, respectively ... The impact to earnings per diluted share from continuing operations is calculated by dividing the net discrete tax benefit by the average number of diluted shares outstanding.)

Business Overview

• Institutional Securities net revenues excluding DVA were $4.3 billion9 reflecting continued strength in Investment Banking and Equity sales and trading and improved results in Fixed Income and Commodities sales and trading.
• Wealth Management net revenues were $3.8 billion and pre-tax margin was 22%.4 Fee based asset flows for the quarter were $6.5 billion, with total client assets above $2.0 trillion at quarter end.
• Investment Management reported net revenues of $655 million with assets under management or supervision of $398 billion.

James P. Gorman, Chairman and Chief Executive Officer, said, “Morgan Stanley has delivered another quarter of earnings growth and strong performance based on consistent execution for our clients. We are well positioned to create superior returns for our shareholders, particularly as the U.S. economy continues to strengthen.”

For earnings history and earnings-related data on Morgan Stanley (MS) click here.