Banking & Finance

What's Up With Morgan Stanley's Q1 Earnings?

Morgan Stanley (NYSE: MS) released its first-quarter earnings report before the opening bell on Thursday. The investment house said that it had $1.01 in earnings per share (EPS) and $9.5 billion in revenue, which compares with consensus estimates that called for EPS of $1.14 and $9.73 billion in revenue. In the same period of last year, it said it had $1.39 in EPS on revenue of $10.29 billion.

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

  • Investment Banking revenues increased 2% year over year to $1.27 billion.
  • Trading revenue decreased by 11% to $3.06 billion.
  • Investments revenue decreased by 86% to $38 million.
  • Commissions and Fees increased by 41% to $1.36 billion.
  • Asset Management revenue increased 12% to $3.42 billion.

For the quarter, book value per share was $49.09 and tangible book value per share was $43.28.

James Gorman, board chair and chief executive, commented:

Over the past two months, we have witnessed more market volatility, uncertainty and anxiety as a result of the devastating COVID-19 than at any time since the financial crisis. While it’s too early to predict how this will unfold, Morgan Stanley navigated the quarter well given the conditions, and our results bear testament to the strength of our balanced business model. Our investments in technology and infrastructure enabled us to continue to serve our clients around the globe with more than 90% of our employees working from home. I am proud of the dedication and professionalism of our employees in the face of these obstacles.

Morgan Stanley stock traded down about 3% to $37.39 Thursday morning, in a 52-week range of $27.20 to $57.57. The consensus price target is $46.25.