Morgan Stanleyreported lower earningsper share, net income and revenue in its second quarter report.
- The results were also below expectations, due in particular to the weakness of the investment bank.
Morgan Stanley on Thursday reported lower second-quarter earnings and revenue that also missed analysts’ estimates, due to weak investment banking business.
Here are the key numbers:
- Quarterly turnover: $13.13 billion vs $13.48 billion forecast by Bloomberg analysts
- Diluted earnings per share: $1.39 vs $1.53 analyst consensus
- Net revenue: $2.5 billion vs $3 billion analyst consensus
Revenue and EPS results represented year-over-year declines of 11% and 25%, respectively.
Morgan Stanley stock fell 1.21% in premarket trading Thursday to $74.98, and it’s down about 24% so far this year.
“Overall, the company delivered a strong quarter in a more volatile market environment than we have seen in some time,” CEO James Gorman said in a statement Thursday.
Quarterly results arrive as
Meanwhile, the sharp decline in equities during the quarter weighed on IPOs and mergers which typically provide a key source of fee income for investments.
In the second quarter, equity trading revenue rose 5% to $2.96 billion, and fixed income trading revenue jumped 49% to $2.5 billion.
Investment banking revenue fell 55% to $1.07 billion due to lower completed M&A deals. Wealth management revenue fell 6% to $5.7 billion.
Earlier Thursday, JPMorgan Chase missed quarterly guidance and reported a 28% drop in second-quarter profit.
Citigroup reports Friday, while Bank of America and Goldman Sachs are due to report Monday.