Morgan Stanley profit crushes estimates on trading strength

Morgan Stanley profit crushes estimates on trading strength

"As long as we're in this uncertain environment, Goldman and Morgan Stanley are absolutely the lower-risk way to play financials", Oppenheimer Senior Analyst Chris Kotowski says. But they are performing better than the overall trend of the Financials (NYSEARCA:XLF) -1.2% before the bell and were up about 3.5% week to date on expectations of an earnings beat, especially after Goldman's results.

Morgan Stanley eased past Wall Street estimates for profit on Thursday, wrapping up mixed third-quarter earnings for big US banks that saw those focused on trading clocking big gains while retail banks took a hit from the pandemic.

Fixed-income trading revenue at Morgan Stanley was $1.92 billion, compared with the $1.7 billion analysts were predicting, based on estimates compiled by Bloomberg. Gorman's gross sales and buying and selling workforce rode a frothy inventory market to a 20 % income improve from final yr, netting $four.1 billion for the three months ending in September, $400 million greater than analysts projected.

'Big investment banks are the easiest financial stocks to own because they have comparatively small loan portfolios (which are the biggest risk) but have upside earnings leverage to the now active capital markets.

A banner quarter for Morgan Stanley.

It was a tale of two types of banks in the third quarter.

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A sixth man Brian Croft is also charged in the case and awaiting transfer from DE to MI . The federal preliminary hearing began Tuesday and wrapped up Friday.

Revenue from Morgan Stanley's institutional securities division, which is houses its investment banking and trading businesses, rose 21% to $6.1 billion. Equity underwriting more than doubled from a year earlier.

"In a typical election season, you would see volatility increasing into the election and then subsiding", Pruzan said.

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The banking giant says the current quarter included intermittent net discrete tax benefits of $113 million which had an impact of $0.07 per diluted share. The Eaton Vance acquisition is expected to wrap up in the middle of next year. Morgan Stanley's stock trading division - the firm's specialty - saw next revenues increase to $2.26 billion from $1.99 billion a year earlier.

The bank's wealth management arm also turned in a solid quarter with a 7% jump in revenue to $4.66bn.

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