Morgan Stanley (MS) and BlackRock (BLK) released their latest earnings reports before opening bell this morning. Morgan Stanley posted earnings of $1 per share on $9.7 billion in revenue, compared to the consensus estimates of 89 cents per share and $9.3 billion. In last year’s first quarter, the firm reported $7.8 billion in revenue and 55 cents per share.
BlackRock reported adjusted earnings of $5.25 per share, against the consensus of $4.89 per share, on $2.82 billion in revenue, compared to the $2.87 billion Wall Street was looking for. In last year’s first quarter, the firm reported adjusted earnings of $4.25 per share and $2.62 billion in revenue.
Morgan Stanley posts strong results across segments
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Morgan Stanley’s Institutional Securities revenue rose to $5.2 million from $3.7 million last year, while its Wealth Management revenues rose to $4.1 billion from $3.7 billion last year. Investment Management revenues rose to $609 million from $477 million a year ago, and Firm revenues increased to $9.7 billion from $7.8 billion last year.
Morgan Stanley’s sales and trading revenues edged lower to $2 billion from $2.1 billion last year. Investment banking revenue rose to $1.4 billion from $990 million last year. Advisory revenue fell to $496 million from $591 million last year, while equity underwriting revenue surged to $390 million from $160 million a year ago. Debt underwriting revenue rose to $531 million from $239 million last year.
“We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions,†Chairman and CEO James Gorman said in a statement. “We are confident in our business model and the opportunities ahead, while recognizing that the environment remains uncertain.â€
Shares of Morgan Stanley jumped by as much as 2.35% to $42.18 in premarket trades this morning.
BlackRock records strong inflows
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By BlackRock [Public domain], via Wikimedia Commons
