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Morgan Stanley Q1 Profit Beats Estimates

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Morgan Stanley (MS) reported a first-quarter profit that more than doubled from last year, reflecting strong performance across all of its business segment. Net revenues for the quarter grew 61 percent from the previous year. Quarterly adjusted earnings per share beat analysts' estimates.

Net income applicable to common shareholders for the first-quarter more than doubled to $3.98 billion or $2.19 per share, from $1.59 billion or $1.01 per share in the same quarter last year.

The comparisons of latest-quarter results to prior period were impacted by the acquisitions of Eaton Vance Corp. completed on March 1, 2021, reported in the Investment Management segment and E*TRADE Financial completed in the fourth quarter of 2020, reported in the Wealth Management segment.

Adjusted earnings per share for the first-quarter were $2.22 compared to $1.01 in the previous year. Analysts polled by Thomson Reuters expect the company to report earnings of $1.70 per share for the first-quarter. Analysts' estimates typically exclude special items.

Net revenues for the first-quarter grew 61 percent to $15.72 billion from $9.78 billion a year ago. Analysts expected revenues of $14.09 billion for the first-quarter.

Institutional Securities' net revenues for the quarter rose 66 percent to $8.6 billion from last year, reflecting strength across businesses and geographies on continued strong client engagement and higher volumes in a constructive market environment, notwithstanding losses related to a single client event in the quarter. Pre-tax income was $3.4 billion compared with $950 million a year ago.

Fixed income net revenues increased 44 percent from a year ago reflecting strong performance in credit products, which benefitted from robust client activity particularly in securitized products, partially offset by lower revenues in rates and foreign exchange primarily due to more stable bid-offer spreads versus a year ago.

Wealth Management net revenues for the quarter grew to $6.0 billion from $4.1 billion last year.

Investment Management net revenues were $1.3 billion compared with $692 million a year ago.

The Board declared a $0.35 quarterly dividend per share, payable on May 14, 2021 to common shareholders of record on April 30, 2021.

In Friday pre-market trade, MS was trading at $80.10 down $0.72 or 0.89 percent.

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