This Day On The Street
Continue to site
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: Earnings Loser (Update 1)

On an unadjusted basis, Morgan Stanley's securities sales and trading revenue grew to $2.965 billion in the first quarter from $1.667 billion in the fourth quarter and $2.282 billion in the first quarter of 2012. Underwriting revenue totaled $694 million in the first quarter, declining from $772 million the previous quarter and $538 million a year earlier.

Morgan Stanley CEO James Gorman said "in Global Wealth Management, our operating pre-tax profit was the highest in our history, and we look forward to completing the acquisition of the remaining 35% of our wealth management joint venture once we have obtained full regulatory approval." The company has agreed to purchase the remaining 35% stake of the former Morgan Stanley Smith Barney joint venture with Citigroup (C).

The Global Wealth Management unit's revenue increased 4% sequentially and 5% year-over-year, to $3.470 billion in the first quarter.

Atlantic Equities analyst Richard Staite said in a note to clients that Morgan Stanley's first-quarter results were actually "broadly in line" with estimates, since they included a tax benefit of $142 million, or 7 cents a share.

Please see TheStreet's earnings coverage for a full rundown of Morgan Stanley's first quarter, along with analysts' reaction.

Morgan Stanley's shares have returned 6% this year, following a 28% return during 2012. The shares trade for 0.7 times their reported March 31 tangible book value of $27.39, and for 8.0 times the consensus 2014 EPS estimate of $2.54. The consensus 2013 EPS estimate is $2.10.

MS Chart MS data by YCharts

Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.

Bank of America

Shares of Bank of America were down again on Thursday following a 5% decline on Wednesday, after the company announced disappointing first-quarter results.

Bank of America on Wednesday reported a first-quarter profit of $2.6 billion, or 20 cents a share, increasing from $732 million, or 3 cents a share in the fourth quarter, and $653 million, or 3 cents a share, in the first quarter of 2012. The fourth quarter reflected $2.5 billion in costs for independent foreclosure reviews, and $2.7 billion in charges related to the company's mortgage putback settlement of a long-term dispute with Fannie Mae (FNMA).

Bank of America's first-quarter revenue totaled $23.7 billion, increasing from $22.5 billion a year earlier, and coming in ahead of the consensus estimate of $23.41 billion.

The Fannie Mae settlement led to a great reduction in the outstanding mortgage repurchase claims against Bank of America. Investors' mortgage repurchase claims against the company totaled $28.3 billion as of Dec. 31. Bank of Americas fourth-quarter earnings presentation implied that the Fannie Mae settlement would reduce the putback claims by roughly $12.2 billion, leaving about $16.1 billion in claims.
2 of 4

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $11.86 6.30%
MS $22.96 5.90%
AAPL $93.88 0.19%
FB $101.95 0.04%
GOOG $683.03 -0.01%


Chart of I:DJI
DOW 15,883.20 +223.02 1.42%
S&P 500 1,857.41 +28.33 1.55%
NASDAQ 4,322.8250 +55.9880 1.31%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs