How Morgan Stanley Won Big in Q4

By Chris Lange Updated Jan 30, 11:08AM EST · Published Jan 16, 9:45AM EST

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How Morgan Stanley Won Big in Q4 — © Stephen Chernin / Getty Images

Morgan Stanley (NYSE: MS | MS Price Prediction) released its fourth-quarter financial results before the markets opened on Thursday. The investment bank said that it had $1.30 in earnings per share (EPS) and $10.86 billion in revenue, which topped consensus estimates of $0.99 in EPS and revenue of $9.72 billion. The same period of last year reportedly had EPS of $0.80 on $8.55 billion in revenue.

In terms of its business segments, Morgan Stanley reported as follows:

Investment Banking revenues increased 14% year over year to $1.70 billion.
Trading revenue increased 33% to $2.31 billion.
Investments revenue was $739 million.
Commissions and Fees decreased by 6% to $984 million.
Asset Management revenue increased 6% to $3.45 billion.
Other revenue was $240 million.

For the quarter, book value per share was $45.82 and tangible book value per share was $40.01.

James P. Gorman, board chair and chief executive, commented:

We delivered strong quarterly earnings across all of our businesses. Firmwide revenues were over $10 billion for the fourth consecutive quarter, resulting in record full year revenues and net income. This consistent performance met all of our stated performance targets.

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Shares of Morgan Stanley traded up almost 7% early Thursday at $56.54, in a new 52-week range of $38.76 to $56.90. The consensus price target is $57.35.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.