Mon, Apr. 20, 11:10 AM
- While Evercore ISI's Glenn Schorr calls Morgan Stanley's (MS +1.2%) Q1 results a "Bo Derek" - otherwise known as a "10" - JMP's Devin Ryan is somewhat more measured.
- After stripping out a sizable tax benefit, "core" EPS still beat estimates, but not by nearly as gaudy an amount as the headlines suggest. The outperformance - however - was driven by FICC action, and one wonders how sustainable that is. Wealth Management revenues, on the other hand, were 3% less than what Ryan had modeled.
- "We suspect investors will initially view results favorably, but given the trading-heavy outperformance, we believe the focus will also be on sustainability, which could temper the upside."
- Speaking on the earnings call, Google-bound CFO Ruth Porat - applauding some of the regulatory measures aimed at banks since the crisis - calls for a "time out" to "pause, digest, and assess" what's working and what's not.
- Previously: Morgan Stanley +2% after strong Q1. (April 20)
Mon, Apr. 20, 7:47 AM
- Q1 income from continuing operations (excluding DVA) of $2.3B or $1.14 per share vs. $1.4B and $0.70 one year ago. Company realized a net tax benefit of $564M or $0.29 per share thanks to repatriation of non-U.S. earnings at a lower than expected rate, so the earnings beat was closer to $0.07. Annualized ROE of 10.1%.
- Institutional Securities pre-tax income (excl. DVA) of $1.688B on revenue of $5.333B vs. $1.290B and $4.551B a year ago. FICC revenue of $1.9B vs. $1.7B. Advisory revenue of $471M vs. $336M. Equity sales and trading revenue of $2.3B vs. $1.7B.
- Wealth Management pre-tax income of $855M vs. $686M a year ago on revenue of $3.834B vs. $3.609B. Pre-tax margin of 22%.
- Investment Management pre-tax income of $187M vs. $268M a year ago.
- CET1 ratio of 13.7%. Tangible book value per share of $28.91.
- Firm repurchased about $250M of stock during quarter, or roughly 7M shares.
- Previously: Morgan Stanley beats by $0.36, beats on revenue (April 20)
- MS +2% premarket
Mon, Apr. 20, 7:16 AM
Sun, Apr. 19, 5:30 PM
Tue, Jan. 20, 7:34 AM
- Excluding DVA, Q4 income from continuing operations of $903M or $0.40 per share vs. $336M and $0.15 one year ago.
- Institutional Securities net revenue excluding DVA of $3.2B vs. $3.7B one year ago, with pretax loss of $1.08B vs. pretax loss of $880M one year ago. Advisory revenues of $488M vs. $451M, thanks to boosted M&A activity. Equity sales and trading revenue of $1.6B vs. $1.5B. FICC revenue (excl.DVA) of $599M vs. $694M (-13.7%).
- Wealth Management revenue of $3.8B vs. $3.7B one year ago, and pretax income of $736M vs. $715M. Asset management fee revenue of $2.1B vs. $2B. Transactional revenues of $976M vs. $1.1B. Net interest income of $625M vs. $526M. Compensation expense of $2.3B vs. $2.1B. Total client assets more than $2T at year's end, with those in fee-based accounts of $785B up 13%. WM reps of $16,076 slips from $16,456.
- Investment Management revenue of $588M vs. $858M one year ago, with pretax loss of $6M vs. profit of $331M.
- Previously: Morgan Stanley misses by $0.08, misses on revenue (Jan. 20)
- MS -2% premarket
Tue, Jan. 20, 7:03 AM
Mon, Jan. 19, 5:30 PM
Nov. 5, 2014, 3:06 AM
- Morgan Stanley (NYSE:MS) will receive a one-time lift of $1.3B due to a change in the structure of its Morgan Stanley Smith Barney operation.
- On Oct. 31, Morgan Stanley Smith Barney was converted from a partnership to a corporation. That change allowed the bank to release $1.3B it had previously set aside for taxes.
- The restructuring is not expected to change Morgan Stanley’s tax rate going forward, but it will help the bank’s profitability in Q4.
Oct. 17, 2014, 7:30 AM
- Q3 income from continuing operations (excluding DVA) of $1.6B of $0.77 per share vs. $1B and $0.50 one year ago. This year's Q boosted by net discrete tax benefit of $237M or $0.12 per share.
- Institutional Securities pre-tax income from continuing operations of $1.2B vs. $396M a year ago. Advisory revenue of $392M vs. $275M thanks to boosted M&A activity. Equity underwriting revenue of $464M vs. $236M thanks to boosted IPO activity. FICC net revenue of $997M vs. $835M (about inline with what a few other banks posted). Compensation expense of $1.8B vs. $1.6B.
- Wealth Management pre-tax income of $836M vs. $668M a year ago, on net revenue of $3.8B vs. $3.5B. Asset management fees of $2.2B vs. $1.9B. Net interest income of $601M vs. $493M thanks to higher deposits and loan balances. Compensation expense of $2.2B vs. $2B. Wealth managers of 16,162 fell from 16,517, with average annualized revenue per advisor of $932K up 10%.
- Investment Management pre-tax income of $188M vs. $300M a year ago.
- Tangible book value per share of $29.25. Roughly $195M of stock repurchased during Q, or 5.9M shares.
- MS +2.8% premarket
- Previously: Morgan Stanley beats by $0.23, beats on revenue
Oct. 17, 2014, 7:16 AM
Oct. 16, 2014, 5:30 PM
Jul. 17, 2014, 7:33 AM
- Excluding DVA, income of $1.9B or $0.91 per share vs. $900M and $0.37 one year ago. The quarter also included a discrete tax benefit of $609M - excluding that brings income down to roughly $1.3B and $0.60 per share, so the "beat" is closer to a nickel.
- Institutional Securities pre-tax income of $927M vs. $806M one year ago on roughly flat revenue of $4.16B (excl. DVA). FICC revenue of $1B slips from $1.2B, partially offset by higher advisory revenue. Equity sales and trading revenue of $1.8B was about flat. Compensation expense slipped by $100M to $1.7B.
- Wealth Management pre-tax income of $767M rises from $655M a year ago on revenue of $3.715B up from $3.531B. Pre-tax margin rises above 20%, coming in at 21%.
- Investment Management pre-tax income of $205M up from $160M a year ago on revenue of $692M up from $673M. AUM of $396B up from $347B thanks to market appreciation and positive flows.
- About $284M or 9.3M shares of stock repurchased during quarter. Morgan has approval from the Fed for $1B in buybacks through the end of 2015 Q1.
- MS +2.2% premarket
- Previously: Morgan Stanley beats by $0.35, beats on revenue
Jul. 17, 2014, 7:16 AM
Jul. 16, 2014, 5:30 PM
Apr. 17, 2014, 9:20 AM
- On the surprising strength in FICC revenues in Q1, Morgan Stanley (MS) CFO Ruth Porat - speaking on the earnings call - says weather-related volatility played a big factor in strong commodity business, but credit corporates and mortgages continued to be strong areas for the bank.
- On HFT: “We’ve advocated for increased transparency and trading protocol ... So we welcome ongoing enhancement (in) equity market structure."
- Asked by Mike Mayo to break out the numbers in prime brokerage, Porat declines, saying it's not company policy to break out components within units. "Client balances and revenues are up quarter over quarter and year over year ... (the) highest balances since the crisis."
- Live blog of call
- Shares +2.5% premarket
Apr. 17, 2014, 7:09 AM
- Morgan Stanley (MS) was firing in Q1, with revenue (excl. DVA adjustment) of $8.8B up from $8.5B a year ago, and income from continuing operations of $1.4B or $0.68 per share comparing to $1.2B or $0.60 per share a year ago.
- Wealth Management pre-tax income of $691M on revenue of $3.62B compares to $597M on revenue of $3.47B in last year's Q1. Pre-tax margin of 19%.
- Even FICC is cranking, with revenue of $1.7B up from $1.5B a year ago. This compares to declines at Citi and JPMorgan (though BofA showed an increase). We'll see later this morning what Goldman reports. Prior to earnings season, both Goldman and Morgan were thought to be especially vulnerable to a slowdown in trading revenue.
- Tier 1 Common Equity Tier 1 capital ratio of 14.1%. Tangible book value per share of $27.41.
- Q1 results, press release
- Shares +4.4% premarket
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