Morgan Stanley's Equities Trading Jumps 41% to $5.8 Billion as Q3 Revenue Tops Estimates
Updated
Updated · CNBC · Oct 14
Morgan Stanley's Equities Trading Jumps 41% to $5.8 Billion as Q3 Revenue Tops Estimates
1 articles · Updated · CNBC · Oct 14
Summary
Morgan Stanley’s third-quarter profit rose 6.5% to $4.91 billion, with earnings of $3.03 a share and revenue of $20.34 billion both beating analyst estimates.
A 41% surge in equities trading revenue to $5.8 billion drove the upside, topping StreetAccount forecasts by about $909 million on broad strength across products and regions, especially Asia.
That trading strength offset weaker businesses elsewhere: fixed-income revenue fell 7% to $2.01 billion, roughly $260 million below expectations, while investment-banking revenue rose 2% to $2.16 billion but still missed estimates.
Investment banking got help from more completed mergers, but lower IPO activity and weaker fixed-income underwriting limited gains as rising interest rates continue to cloud the outlook for deals and listings.
Shares slipped less than 1% in premarket trading as investors looked for CEO Ted Pick’s view on whether M&A and IPO activity can recover later this year.