Morgan Stanley beats by $0.06, beats on revs (55.35)
- Reports Q4 (Dec) earnings of $0.84 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.78; revenues rose 5.3% year/year to $9.5 bln vs the $9.25 bln Capital IQ Consensus.
- Results for the current quarter excluded a net discrete tax provision of $990 million or a loss of $0.55 per diluted share.
- The annualized return on average common equity in the current quarter was 2.9 percent, or 8.6 percent excluding the impact of the net discrete tax provision.
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Investment Banking revenues of $1.4 billion increased from $1.3 billion a year ago:
- Advisory revenues of $522 million decreased from $628 million a year ago on lower levels of completed M&A activity.
- Equity underwriting revenues of $416 million increased from $225 million in the prior year quarter driven by higher revenues on IPOs and follow-on offerings.
- Fixed income underwriting revenues of $499 million increased from $421 million in the prior year quarter reflecting higher non-investment grade loan fees.
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Sales and Trading net revenues of $2.7 billion decreased from $3.2 billion a year ago:
- Equity sales and trading net revenues of $1.9 billion decreased from $2.0 billion a year ago reflecting lower revenues in execution services driven by a decline in derivatives, partially offset by increases in the financing business.
- Fixed Income sales and trading net revenues of $808 million decreased from $1.5 billion a year ago primarily driven by lower results in rates and foreign exchange, partially offset by increases in credit products. Results in the prior year quarter reflected improved market conditions following the U.S. elections.
- Wealth Management reported pre-tax income from continuing operations of $1.2 billion compared with $891 million in the fourth quarter of last year. The quarter's pre-tax margin was 26%.4 Net revenues for the current quarter were $4.4 billion compared with $4.0 billion a year ago