Morgan Stanley Q2 EPS $1.85 Beats $1.65 Estimate, Sales $14.80B Beat $13.96B Estimate

Benzinga2021-07-15

Morgan Stanley posted second-quarter profit and revenue that exceeded analysts' expectations on strength in equities trading and investment banking.

Here's how the bank did:

Earnings: $1.85 a share, vs the $1.65 estimate of analysts surveyed by Refinitiv

Revenue:$14.8 billion, vs the $13.98 billion estimate

While rival banks reported a steep slowdown in fixed income trading revenue, dragging down overall second quarter results, Morgan Stanley's strength has traditionally been in its equities trading franchise, the biggest in the world.

That corner of Wall Street has outperformed in the second quarter, as have wealth management businesses, both of which have benefited from high stock values and robust IPO activity. Another area that has flourished is investment banking, propelled by robust mergers activity and related financings.

All of which should play to CEO James Gorman's advantage. Through a series of savvy acquisitions, Gorman has built up the bank's wealth management franchise to be one of the largest in the world. He also helped rehabilitate the firm's trading operations and maintained its leading merger advisory practice.

Shares of the bank have climbed 35% this year, compared to the 26% rise of the KBW Bank Index.

Morgan Stanley is the last of the six largest U.S. banks to report second-quarter earnings.

JPMorgan Chase,Bank of America,Wells Fargo and Citigroup all beat analysts' profit expectations by releasing money set aside earlier for loan losses. Key rival Goldman Sachsbeat estimates on strong advisory results.

Morgan Stanley shares fell 1.58% in premarket.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • RoyLoy
    2021-07-16
    RoyLoy
    Sssh
  • gloster
    2021-07-15
    gloster
    Rr
  • Wengho
    2021-07-15
    Wengho
    Yo
  • Wy1995
    2021-07-15
    Wy1995
    okok
  • PYM1831
    2021-07-15
    PYM1831
    QE money goes to bank.
  • LWayne
    2021-07-15
    LWayne
    Low interest kills the banks. Yes
Leave a comment
24