Morgan Stanley Earnings Beat Expectations. Why the Stock Is Down.

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Updated July 15, 2021 9:15 americium ET / Original July 15, 2021 8:39 americium ET

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Morgan Stanley is the past of the large U.S. banks to study its results this week.

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Morgan Stanley ‘s caller purchases of Eaton Vance and E*Trade helped the slope to present higher net than expected for the 2nd quarter.

The concern slope (ticker: MS) earned $3.5 billion, oregon $1.85 a share, from $14.8 cardinal of revenue. Analysts surveyed by FactSet expected the slope to gain $1.66 per stock connected $13.97 cardinal successful revenue.

In the year-earlier quarter, the slope earned $3.2 cardinal oregon $1.96 per share, with gross of $13.7 billion.

“The Firm delivered different precise beardown quarter, with contributions from each of our businesses,” James Gorman, Morgan Stanley’s main executive, said successful a statement. “Our planetary franchise is precise good positioned to thrust further growth.”

Morgan Stanley’s wealth-management part reported a 30% leap successful gross arsenic a effect of the caller acquisition of E*Trade. The acquisition of Eaton Vance contributed to a 92% summation successful gross for the investment-management business. 

Morgan Stanley’s organization securities conception was a mixed bag. Investment- banking gross climbed 16%, with increases successful completed mergers and acquisitions and equity underwriting. That contrasts with past year, erstwhile superior markets enactment was concisely paused owed to the coronavirus pandemic. 

But similar the banks that reported earlier this week Morgan Stanley saw a crisp drop successful trading revenue. Fixed-income trading was down 45% portion equity trading gross slid 8%.

Morgan Stanley is the past of the big banks to study results this week. Peers specified arsenic Goldman Sachs Group (GS) and JPMorgan Chase (JPM) besides delivered better-than-expected results, but their stocks suffered arsenic investors looked for caller sources of maturation fixed the diminution successful trading activity. Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C), besides reported their results this week.

Morgan Stanley shares were down 1.4% successful premarket trading.

Write to Carleton English astatine

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