Morgan Stanley says its profit jumped over 100% in fiscal Q1

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Apr 16, 2021
  • Morgan Stanley says its profit jumped over 100% in fiscal Q1.
  • The financial services firm repurchased £1.52 billion of stock.
  • Morgan Stanley notes a 60% annualised growth in its revenue.

Morgan Stanley (NYSE: MS) said on Friday that its profit jumped over 100% in the fiscal first quarter to beat market expectations. Growth in its institutional securities business, the investment bank added, also helped revenue climb by 60%.

Morgan Stanley shares were reported 1% down in premarket trading on Friday. The stock is now exchanging hands at £58 per share versus a lower £49.52 per share at the start of the year.

Morgan Stanley’s Q1 financial results versus analysts’ estimates

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Morgan Stanley said that its net income in the first quarter printed at £2.88 billion that translates to £1.59 per share. In the same quarter last year, its net income was capped at a significantly lower £1.15 billion, or 73 pence per share.

Adjusted for one-time items, the American multinational earned £1.61 per share in Q1. Morgan Stanley valued its revenue at £11.39 billion in the recent quarter that represents a 60.7% annualised growth.

According to FactSet, experts had forecast the company to post £10.22 billion of revenue in the first quarter. Their estimate for adjusted per-share earnings stood at a lower £1.25. In February, Morgan Stanley’s investment arm Counterpoint Global was reported exploring BTC investment.

At £1.47 billion, Morgan Stanley’s net interest income came in 49.6% higher than last year to top FactSet consensus of £1.16 billion. The financial services company repurchased stock worth £1.52 billion in the recent quarter.

In separate news from the United States, Wolfe Research upgraded Cisco Systems to ‘outperform’ on Friday.

Other prominent figures in Morgan Stanley’s earnings report

Other notable figures in Morgan Stanley’s earnings report on Friday include a 65.6% growth in revenue from institutional securities that also beat analysts’ estimates. Equity revenue saw a 17.4% year over year increase in Q1, while fixed-income revenue jumped 43.8%.

CEO James Gorman commented on the financial report on Friday and said:

“The Firm delivered record results. The integrated Investment Bank continues to thrive. We closed the acquisition of Eaton Vance which takes Investment Management to over $1.4 trillion of assets. Wealth Management brought in record flows of $105 billion. The Firm is very well positioned for growth in the years ahead.”

Morgan Stanley performed largely upbeat in the stock market last year with an annual gain of roughly 30%. At the time of writing, the New York-based bank is valued at £109.57 billion and has a price to earnings ratio of 12.50.

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