Morgan Stanley Beats Estimates
Morgan Stanley (MS), like its peers, posted depressed first-quarter earnings but managed to beat expectations that it would suffer much worse in the subprime-inspired credit crisis.
The New York-based investment firm reported a profit of $1.53 billion, or $1.45 a share. Analysts had been estimating a first-quarter profit of $1.03 a share on $7.19 billion of revenue, according to Thomson Financial.
Revenue at the investment bank, however, fell 17% to $8.3 billion, from $10 billion a year ago.
"While many of our businesses are facing challenging market conditions that we expect to continue in the months ahead, we are satisfied with how Morgan Stanley navigated the ongoing market turbulence," said CEO John Mack in statement.Shares recently were up 7.5% to $46.08. Morgan's better-than-expected results come a day after rival firms Lehman Brothers (LEH) and Goldman Sachs (GS) also bested analyst first-quarter estimates. Morgan Stanley's results also come three days after Bear Stearns (BSC), teetering on bankruptcy, was offered a $2-a-share
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