Morgan Stanley Beats on Revenues

Morgan Stanley (NYSE: MS) topped analysts expectations on both the top and bottom lines on strong investment banking results that saw revenues in the division climb 15% over the past year. Bond and equity trading revenues also exceeded expectations despite a late-summer lull.

Earnings came in at $1.17 per share vs. $1.01 per share forecast by analysts polled by Refinitiv. Meantime, revenue proved to be $9.87 billion vs. $9.55 billion forecast by analysts. Equity trading revenue was $2 billion vs. $1.98 billion forecast.

MS also declared that net income applicable to shareholders came in at $2.02 billion, or $1.17 per diluted share, up 20% from a year ago. In totality, the bank reported profit of $2.11 billion on $9.87 billion in revenue.

In the bank's equities division, the biggest on Wall Street, the company delivered $2 billion in revenue on "solid" performance across all products, especially financing, up 5% since September 2017. Its bond trading department produced $1.2 billion, unchanged year over year, on higher results in foreign exchange and commodities.

CEO James Gorman trumpeted the results in the news release dealing with the figures. "Despite the seasonal summer slowdown in the third quarter, we reported solid revenue and earnings growth demonstrating the stability of the franchise."

Shares of Morgan Stanley are down more than 17% so far this year, worse than any other major Wall Street bank. They opened trading Tuesday morning up $1.35, or 3.1%, to $44.82.