--> no pre market for now
Morgan Stanley beats by $0.08, beats on revs
- Reports Q1 (Mar) earnings of $0.55 per share, $0.08 better than the Capital IQ Consensus of $0.47; revenues fell 21.3% year/year to $7.79 bln vs the $7.63 bln Capital IQ Consensus.
- Institutional Securities net revenues were $3.7 billion reflecting challenging market conditions in Fixed Income & Commodities sales and trading and underwriting, with strength in Equity sales and trading and M&A advisory.
- Wealth Management net revenues were $3.7 billion and pre-tax margin was 21%.3 Results reflect strong growth in net interest income offset by weakness in transactional revenues. Fee based asset flows for the quarter were $5.9 billion.
- Investment Management reported net revenues of $477 million reflecting losses in private equity and real estate and stable asset management fees. Assets under management or supervision were $405 billion at the end of the quarter.
- Compensation expense of $3.7 billion decreased from $4.5 billion a year ago driven by lower revenues. Non-compensation expenses of $2.4 billion compared with $2.5 billion a year ago.
- The annualized return on average common equity was 6.2% in the current quarter.
- At March 31, 2016, book value and tangible book value per common share were $35.34 and $30.44,17 respectively, based on approximately 1.9 billion shares outstanding.
- "The first quarter was characterized by challenging market conditions and muted client activity. Against that backdrop, our businesses delivered stable results. While we see some signs of market recovery, global uncertainties continue to weigh on investor activity."