Morgan Stanley beats by $0.10, beats on revs
- Reports Q2 (Jun) earnings of $0.87 per share, $0.10 better than the Capital IQ Consensus of $0.77; revenues rose 6.7% year/year to $9.5 bln vs the $9.05 bln Capital IQ Consensus.
- Institutional Securities reported pre-tax income from continuing operations of $1.4 bln compared with pre-tax income of $1.5 bln a year ago. Net revenues for the current quarter were $4.8 bln compared with $4.6 bln a year ago.
- Investment Banking revenues of $1.4 bln increased from $1.1 bln a year ago.
- Sales and Trading net revenues of $3.2 bln decreased from $3.3 bln a year ago: Equity sales and trading net revenues of $2.2 bln increased from $2.1 bln a year ago reflecting strong contributions across products and regions. Fixed Income sales and trading net revenues of $1.2 bln decreased from $1.3 bln a year ago driven by lower volatility and sporadic activity during the quarter.
- Compensation expense of $1.7 bln increased from $1.6 bln a year ago driven by higher revenues. Non-compensation expenses of $1.7 bln for the current quarter increased from $1.4 bln a year ago, reflecting a provision related to a U.K. indirect (value-added) tax matter and higher volume driven expenses.
- Wealth Management reported pre-tax income from continuing operations of $1.1 bln compared with $859 mln in the second quarter of last year. The quarter's pre-tax margin was 25%.2 Net revenues for the current quarter were $4.2 bln compared with $3.8 bln a year ago.
- Investment Management reported pre-tax income from continuing operations of $142 mln compared with $118 mln in the second quarter of last year. Net revenues of $665 mln increased from $583 mln in the prior year.
- At June 30, 2017, book value and tangible book value per common share were $38.22 and $33.24,15 respectively, based on ~1.8 bln shares outstanding.
- Confirms dividend increased to $0.25 and buyback up to $5 bln.