Morgan Stanley Earnings Q4 2019 exceeds estimates

Morgan Stanley shares appeared after the company exceeded analyst earnings estimates and each of its three main businesses generated more revenue than expected.

The bank said Thursday that fourth-quarter earnings increased 46% to $ 2.24 billion, or $ 1.30 per share, compared to the 99-cent estimate of analysts surveyed by Refinitiv. Revenue increased 27% to $ 10.86 billion, exceeding the estimate of $ 9.72 billion by more than $ 1 billion.

The company’s shares rose 2.7% in pre-marketing operations.

“We deliver strong quarterly earnings in all our businesses,” CEO James Gorman said in the statement. “The revenues of the entire company exceeded $ 10 billion for the fourth consecutive quarter, which resulted in record revenues for the entire year and net revenues. This consistent performance met all of our established performance objectives.”

In a quarter in which competitors, from J.P. Morgan Chase to Goldman Sachs, posted large rebounds in fixed-income commercial revenues, analysts wanted to see if Morgan Stanley would do the same.

Gorman has tilted Morgan Stanley towards wealth management and has revised his bond trade division that once had problems. But commercial and advisory operations remain a crucial part of the company’s business combination.

Last month, Morgan Stanley cut approximately 2% of its workforce due to an uncertain global economic outlook, a sacrifice that most affected technology and operations roles, people with knowledge of the matter said.

Morgan Stanley is the last of the six largest US banks to report results.

Earlier this week, J.P. Morgan, Citigroup and Bank of America published earnings that exceeded analysts’ expectations about the growing results of bond trading. The results at Wells Fargo and Goldman Sachs were marred by the legal expenses linked to the scandals: in Wells, the legal charges were linked to their fake account problem, while Goldman was about to resolve his 1MDB investigation.

This is what Wall Street expected:

Earnings: 99 cents per share, 24% more than the previous year, according to Refinitiv

Revenue: $ 9.72 billion, 14% more than the previous year

Asset management: $ 4.39 billion, according to FactSet

Commerce: shares $ 1.93 billion, fixed income $ 933.5 million


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