Update (4:15 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- Morgan Stanley (MS) rose 3.99% to $33.28, up $1.28 from its previous close of $32, at the close of the trading day on Friday after the company reported better-than-expected fourth-quarter earnings.
The stock had a volume of 29,222,462, more than double its average of 11,506,000. It hit a high of $33.52 and a low of $31.94 for the day.
The bank earned 50 cents a share (excluding items such as $1.2 billion in legal expenses), according to Reuters. This eclipsed the average analyst estimate of 45 cents. The bank's retail brokerage business, which manages money for wealthy clients, produced revenue of $3.73 billion in the quarter, up from $3.33 billion in the same period one year earlier.
Morgan Stanley's retail brokerage business achieved the company's pretax profit margin target, and the second-largest U.S. investment bank raised that target for the next few years.
TheStreet Ratings team rates MORGAN STANLEY as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MORGAN STANLEY (MS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 34.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 180.00% and other important driving factors, this stock has surged by 60.80% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 188.6% when compared to the same quarter one year prior, rising from -$1,023.00 million to $906.00 million.
- MORGAN STANLEY reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MORGAN STANLEY reported lower earnings of $0.00 versus $1.16 in the prior year. This year, the market expects an increase in earnings to $2.05 from $0.00.
- You can view the full analysis from the report here: MS Ratings Report
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