logo-loader
Morgan Stanley

Morgan Stanley tops first-quarter earnings expectations on equity trading

The banking giant’s top and bottom line blew past Wall Street expectations

A Morgan Stanley building
Shares surged in pre-market after reporting record profit and revenue for the first-quarter

Shares of Morgan Stanley (MS:NYSE) surged before the opening bell Wednesday after it posted strong first-quarter results that topped analysts’ expectations.

The banking giant reported net income of US$1.45 per share vs. US$1.25 expected by Wall Street.

It also posted record revenue of US$11.1bln vs. calls for US$10.36bln as the bank's equity trading unit navigated renewed financial market volatility better than competitors like Goldman Sachs.

Its stock rose 3.1% in Wednesday's pre-market session on the results.

"We delivered very strong results this quarter, with record revenues and net income - and an ROE above our target range," said CEO James Gorman in a release. "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."

Morgan Stanley's high performing equity trading desk locked in revenue of US$2.6bln in the period, up 30% from a year ago. The bank said it benefited from "higher levels of client activity" during the quarter.

In comparison, Goldman Sachs Group Inc. (NYSE: GS) posted equity trading sales of US$2.31bln for the first quarter.

 

Quick facts: Morgan Stanley

Price: $40.00

Market: NYSE
Market Cap: $66.12 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Brickability Group PLC looks to raise £57mln as it lists in London

Brickability Group PLC's chairman John Richards chats to Proactive's Andrew Scott ahead of the firm's listing next week in London. It plans to raise £57mln as part of the initial public offering, valuing it at around £150mln. The Bridgend-based company, which counts Redrow plc (LON:RRW)...

6 hours, 56 minutes ago

2 min read