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Revenues Jump 50% at Morgan Stanley

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Revenues Jump 50% at Morgan Stanley

Shares of Morgan Stanley (NYSE:MS) traded to the upside on Friday morning following strong third quarter results before the market open on Friday. Third-quarter revenue jumped 50 percent, as a result, adjusted earnings beat expectations. Higher income from equities sales and trading made up for a drop in the the company’s Wall Street bank and brokerage fixed-income business. Over the last couple weeks we have seen a number of large financial institutions report their third quarter results.

The results have been mixed to say the least, however, signs of an improving economy can be seen within many of the conference calls. Morgan Stanley reported net income of $888 million, or 44 cents per share, from continuing operations in the quarter. These results fared better in comparison with a loss of $1 billion, or 55 cents per share, a year earlier. The year-earlier figure included a charge of $2.3 billion to reflect a rise in the value of Morgan Stanley’s debt. Adjusted revenue from equities trading rose 31 percent to $1.7 billion, while revenue from fixed income, currency and commodities (FICC) trading dropped by 44 percent to $835 million.

Following the report, Morgan Stanley’s Chairman and Chief Executive, James Gorman, stated:

“Our strategy to combine a world class investment bank with the stability of the largest U.S. wealth management franchise and strong investment management is enabling us to deliver exceptional advice and execution for our clients as well as stronger returns for our shareholders,”

Going into next week it seems likely the entire financial sector will come under review. It is expected we see a number of upgrades and or downgrades on Monday as Wall Street’s professionals aim to adjust their recommendations. Until then, shares of Morgan Stanley are up by 2.75 percent to $29.75 per share at the time of this writing.

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