Morgan Stanley’s equity trading revenue beats estimates

On Tuesday, Morgan Stanley reported a 7% rise in equities trading revenue and a 7.3% rise in overall revenue for the third quarter. The results surpass expectations across the board.

Morgan Stanley’s success is in part due to a long-term focus on risk-reduction and investments in better tools and financial technology.

Here’s how the reported profits compare to the estimates:

  • Revenue: $9.9 billion, up 7% and beating analyst expectations of $9.6 billion
  • Net income: $2.1 billion, up 19% versus $1.8 billion expected
  • Earnings per share: $1.17, beating expectations for $1.01
  • Return on equity: 11.5% versus 10.5% expected
  • Investment-banking revenue of $1.5 billion, rose 15% over the year-ago period on strong equity and fixed-income underwriting revenue. M&A advisory was down because of lower levels of completed deals.
  • In sales and trading, revenue from bond trading was up 1%, while equity trading was up 7%.
  • Wealth management saw revenue of $4.4 billion, up 4% from the year-ago period.

(via Business Insider)