Morgan Stanley Q1 Results Tops Estimates

Financial services firm Morgan Stanley (MS) reported Tuesday a profit for the first quarter that increased 15 percent from last year, driven by revenue growth across its operating segments and lower provisions for credit losses. Both earnings per share and quarterly revenues topped analysts’ estimates.

In Tuesday pre-market trading, MS is currently trading on the NYSE at $90.30, up $3.31 or 3.81 percent.

“As a result of strong net new asset growth, the Firm has reached $7 trillion of client assets across Wealth and Investment Management. Institutional Securities also saw strength across the markets and underwriting businesses. The Morgan Stanley Integrated Firm model is delivering durable results,” said CEO Ted Pick.

For the first quarter, net income applicable to the company’s common shareholders increased to $3.27 billion or $2.02 per share from $2.84 billion or $1.70 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.66 per share for the quarter. Analysts’ estimates typically exclude special items.

Net revenues for the quarter increased 4 percent to $15.14 billion from $12.99 billion in the same quarter last year. Analysts expected revenues of $14.41 billion for the quarter.

Institutional Securities net revenues grew 16 percent to $7.02 billion from $6.80 billion, reflecting strong performance across the broad franchise, with particular strength in Equity as well as underwriting revenues, partially offset by lower results in Advisory.

Wealth Management net revenues increased 5 percent to $6.88 billion from last year’s $6.56 billion, reflecting record asset management revenues driven by the positive market environment.

Investment Management net revenues were $1.38 billion, up 7 percent from $1.29 billion a year ago, driven by increased asset management and related fees amid higher average Assets Under management (AUM) of $1.5 trillion.

The company’s provision for credit losses were a net benefit of $6 million, compared to provision of $234 million in the year-ago quarter.

The company’s board of directors declared a $0.85 quarterly dividend per share, payable on May 15, 2024 to common shareholders of record on April 30, 202r.

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