This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morgan Stanley Shares Surge on Report

Updated with latest share price, additional information.

NEW YORK ( TheStreet) -- Shares of Morgan Stanley (MS - Get Report) surged Wednesday after the bank handily beat Wall Street profit expectations as trading revenue held up better than anticipated.

The stock leapt nearly 9% to $27.36 in morning trades. Volume was already nearing 12 million less than an hour into the session. The issue's trailing three-month daily average volume is 19.5 million.

Before the opening bell, Morgan Stanley reported second-quarter earnings from continuing operations of $1.8 billion, or 80 cents a share. The latest results include a tax benefit of $345 million, or 20 cents a share, stemming from a reevaluation of tax reserves.

Revenue came in at $8 billion for the three months ended June 30, up from $5.2 billion in the same period a year earlier. Revenue from bank's Institutional Securities business, which houses its trading operations, totaled $4.5 billion for the quarter. Fixed income sales and trading revenue was $2.3 billion, down around 15% from $2.7 billion in the first quarter. Revenue from equities sales and trading was $1.4 billion, flat with its first-quarter total.

These declines were modest in comparison to those of main rival Goldman Sachs (GS - Get Report), which saw sequential declines of 40% for its FICC business and 50% for equities trading.

The average estimate of analysts polled by Thomson Reuters was for a profit of 46 cents a share in the June period on revenue of $7.93 billion.

Including discontinued operations, Morgan Stanley earned $1.09 a share, reflecting the impact of an after-tax gain of $514 million related to the sale of its retail asset management business.

"While markets were challenging this quarter, Morgan Stanley benefited from a deliberate and disciplined focus on execution," said James Gorman, the company's president and CEO, in a statement. "We strengthened leading market positions in our client-focused Investment Banking business, improved client flows in Sales and Trading, and continued progress on the integration of Morgan Stanley Smith Barney as well as the repositioning of our Asset Management business."

But Gorman sounded a note of caution going forward: "We still have a great deal of work to do across our global franchise and anticipate that the difficult market environment may continue in the months ahead."

Morgan Stanley shares closed Tuesday at $25.22, up.
Don't Miss Any Market Catalyst
Visit the Earnings/Economic Calendar
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GS $205.17 0.23%
MS $38.92 0.41%
AAPL $114.64 -3.21%
FB $94.06 -0.08%
GOOG $629.25 -0.31%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs