UPDATE: Morgan Stanley Shares Rise On Better-Than-Expected Q3 Results

Shares of Morgan Stanley MS surged more than 4% in pre-market trading after the bank reported upbeat results for the third quarter. The New York-based company posted quarterly net income of $1.718 billion, or $0.84 per share, compared to $889 million, or $0.45 per share, in the year-ago period. The recent quarter included a net discrete tax benefit of $0.12 per diluted share. Its revenue surged to $8.907 billion from 47.950 billion. Excluding DVA, revenue came in at $8.7 billion and earnings were $0.77 per share. However, analysts were expecting earnings of $0.54 per share on revenue of $8.17 billion. Wealth management revenue jumped 9% to $3.79 billion, while investment management net revenue fell to $655 million from $828 million. During the quarter, the bank repurchased around $195 million of its common stock or around 5.9 million shares. Morgan Stanley declared a $0.10 quarterly dividend per common share, Compensation expense rose to $4.2 billion from $4.0 billion, while non-compensation expenses fell to $2.4 billion from $2.6 billion. James P. Gorman, Chairman and Chief Executive Officer, said, “Morgan Stanley has delivered another quarter of earnings growth and strong performance based on consistent execution for our clients. We are well positioned to create superior returns for our shareholders, particularly as the U.S. economy continues to strengthen.” Morgan Stanley shares climbed 4.06% to $33.85 in pre-market trading.