Updated from 9:57 a.m. EDT
Driven by a jump in stock trading profits and investment banking fees,
Morgan Stanley Dean Witter
( MWD) topped analysts' projections when it reported Thursday that second-quarter profits rose 27% from a year ago.
The company reported net income of $1.46 billion for the quarter ended May 31, compared to $1.15 billion in last year's second quarter. Revenue meanwhile, jumped 25% compared to last year, to $7.1 billion from $5.6 billion.
The figures equate to 30% growth in earnings per share to $1.26 from 97 cents a year ago. The consensus among analysts was for $1.13 a share, according to market research firm
First Call/Thomson Financial
Much of the company's gains in stock trading came from abroad, according to a statement. Fixed-income results were flat, as record revenue from commodities contracts were offset by a decline in junk bond profits. Fees generated from mergers and acquisitions drove the investment banking division.
These gains were slightly offset by losses from its venture capital wing, which posted a $197 million loss -- compared to a $29 million profit a year ago -- due to a fall in the share prices of telecommunications and Internet companies it helped to bring public, including
Its asset management arm earned $156 million, up 49% from last year's second-quarter earnings of $105 million. Morgan Stanley Dean Witter, the owner of the
credit card, saw net income from credit services rise to a record $212 million, up from $211 million last year.
Morgan Stanley shares traded down 2 7/16, or 3%, at 84 3/16 Thursday.