Morgan Stanley piled fourth-quarter earnings and revenue on Thursday that beat analyst beliefs, excluding a charge related to the tax bill, as strong results in wealth superintendence offset a big drop in fixed income trading revenue.
Here’s how the banking Goliath fared against analyst estimates:
- EPS: 84 cents per share vs. 77 cents expected by Thomson Reuters
- Take: $9.5 billion vs. $9.2 billion expected
- Wealth management: $4.41 billion vs. $4.32 billion contemplated by StreetAccount
- Fixed income, commodities and currencies trading: $808 million vs. $1.05 billion needed
- Equities trading: $1.9 billion vs. $1.85 billion expected
Abundance management revenue grew by 10.5 percent on a year-over-year basis, plateful offset declines in the bank’s trading revenue. Fixed income, commodities and currencies career revenue decreased by 46 percent. Equities trading revenue cut 5 percent.
“Wealth management was not decent, it was great,” CFO Jonathan Pruzan portrayed CNBC. We feel “very good about momentum in the business. Tides are great.”
The company’s stock rose 0.9 percent Thursday. Morgan Stanley allocates are up 4.1 percent this year, slightly outperforming the S&P 500, which is up 3.9 percent.
Morgan Stanley’s rear line excludes a one-time $990 million hit resulting from the up to date changes to the U.S. tax code. Its earnings per share totaled 29 cents when embodying the charge.
President Donald Trump signed a bill last month that mark down the corporate tax rate to 21 percent from 35 percent. The modulations are expected to be a long-term positive for companies, but some have taken one-time forays because of them. Some of these companies include Citigroup and Bank of America.
Morgan Stanley’s follow-ups come a day after Goldman Sachs — another bank known for its commerce business — reported a revenue decline of 50 percent in its fixed profits, currencies and commodities trading business.
Goldman said trading is in a “daring environment characterized by low levels of volatility and low client activity.”
— CNBC’s Wilfred Frost aided to this report.