Morgan Stanley Beats Q2 Estimates, Shares Rise

Shares of Morgan Stanley MS surged around 2 percent in pre-market trading after the bank reported better-than-expected results for its second quarter. The New York-based bank posted a quarterly profit of $1.81 billion, or $0.85 per share, compared to $1.9 billion, or $0.92 per share, in the year-ago period. On an adjusted basis, Morgan Stanley earned $0.79 per share. Its net revenue climbed to $9.74 billion from $8.61 billion, while adjusted revenue rose to $9.56 billion. Analysts were expecting earnings of $0.74 per share on revenue of $9.10 billion. The average estimate among 49 Estimize users was for earnings of $0.77 per share and revenue of $9.22 billion. Its trading revenue surged 32 percent year-over-year to $3.5 billion from $2.65 billion, while revenue from equities rose 28 percent to $2.34 billion. Its wealth management net revenue gained 4.7 percent to $3.88 billion. Its compensation and benefits expenses rose 5 percent to $4.41 billion from $4.2 billion. Excluding an accounting adjustment, return on equity narrowed to 9.1 percent, from 10.7 percent in the year-ago quarter. James P. Gorman, Chairman and Chief Executive Officer, said, "We delivered a strong quarter across each of our businesses, through client-focused execution, expense discipline and prudent risk management. We remain focused on delivering the long-term value of this franchise." Morgan Stanley shares gained 1.97 percent to $40.99 in pre-market trading.