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Morgan Stanley Shares Rise After Q1 Profit Beats Estimates

Morgan Stanley (MS) reported first-quarter earnings that surpassed the analysts' estimates. Shares of the company were up more than 2 percent in premarket trade. The bank reported earnings of $1.39 per share compared with $1.45 per share a year ago. Total earnings declined 9 percent year-over-year to $2.34 billion. During the quarter, it recorded certain tax benefits of $101 million, or $0.06 per share. Excluding this, earnings were $1.33 per share. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $1.16 for the quarter. Analysts' estimates typically exclude special items. Wealth Management delivered pre-tax income of $1.2 billion reflecting strong expense management.

For the first-quarter, net revenues were $10.3 billion compared to $11.1 billion a year ago. This beat analysts' estimate of $10 billion. Institutional Securities reported net revenues of $5.2 billion compared to $6.1 billion, prior year. Wealth Management net revenues slightly increased to $4.39 billion from $4.37 billion, last year. Investment Management reported net revenues of $804 million compared with $718 million, a year ago.

James Gorman, CEO, said, "We delivered solid earnings despite a slow start to the year following the turbulent markets in the fourth quarter. With an ROE of 13.1% and ROTCE of 14.9%, our results demonstrated the stability and breadth of our global franchise."

Currently, the shares are up 1.66 percent at $47.80.

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