Morgan Stanley Beats Q1 Estimates

reported stronger-than-expected results for the first quarter on Monday. The New York-based bank reported a quarterly income from continuing operations of $2.4 billion, or $1.18 per share, versus $1.5 billion, or $0.74 per share, in the year-earlier quarter. Excluding DVA, the bank's adjusted earnings from continuing operations came in at $0.85 per share. Its revenue climbed to $9.9 billion from $9.0 billion, while revenue excluding DVA rose to $9.8 billion from $8.9 billion. However, analysts were expecting earnings of $0.78 per share on revenue of $9.17 billion. Trading revenue climbed 26 percent to $4.08 billion in the quarter. Revenue from investment banking gained 3.3 percent to $1.17 billion in the quarter. Compensation expense climbed to $4.5 billion from $4.3 billion, while non-compensation expenses rose to $2.5 billion from $2.3 billion in the year-ago quarter. During the quarter, Morgan Stanley repurchased around $250 million of its common stock. Morgan Stanley lifted its quarterly dividend to $0.15 per share compared to $0.10 per share. James P. Gorman, Chairman and Chief Executive Officer, said, "This was our strongest quarter in many years with improved performance across most areas of the firm. It reflects our ongoing strategy to build platforms for growth while maintaining a prudent risk profile and disciplined expense management." The average estimate among 47 Estimize users was for earnings of $0.80 per share and revenue of $9.32 billion. Morgan Stanley shares gained 2.04 percent to $37.50 in pre-market trading.