Morgan Stanley posted third-quarter outcomes that topped revenue estimates on better-than-expected buying and selling income.
This is what the corporate reported:
- Earnings per share: $1.38, vs. anticipated $1.28 estimate from LSEG, previously often known as Refinitiv
- Income: $13.27 billion, vs. anticipated $13.23 billion
Revenue fell 9% to $2.41 billion, or $1.35 a share, from a 12 months in the past, the New York-based financial institution mentioned in a statement. Income grew 2% to $13.27 billion, primarily matching expectations.
Morgan Stanley’s buying and selling operations helped offset income misses elsewhere on the Wall Road agency. The financial institution’s bond merchants produced $1.95 billion in income, roughly $200 million greater than the StreetAccount estimate, whereas fairness merchants made $2.51 billion in income, $100 million greater than anticipated.
However the financial institution’s all-important wealth administration division generated $6.4 billion in income, under the $6.63 billion estimate by greater than $200 million, as compensation prices within the division rose.
Shares of Morgan Stanley dipped 2.9% in premarket buying and selling.
Morgan Stanley has managed to keep away from the turbulence afflicting a few of its rivals.
Whereas Goldman Sachs was pressured to pivot after a poorly executed foray into retail banking and as Citigroup struggles to carry its inventory value, the principle query at Morgan Stanley is about an orderly CEO succession.
In Could, CEO James Gorman introduced plans to resign inside a 12 months, capping a profitable tenure marked by large acquisitions in wealth and asset administration. Morgan Stanley’s board has narrowed the seek for his alternative to a few inside executives, he mentioned on the time.
Analysts can be eager to listen to any updates Gorman has on the search course of.
Final week, JPMorgan Chase, Wells Fargo and Citigroup every topped expectations for third-quarter revenue, helped by low credit score prices. Goldman Sachs and Financial institution of America additionally beat estimates on stronger-than-expected bond buying and selling outcomes.
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