Morgan Stanley (MS, Financial) announced its third-quarter earnings on Tuesday. The company beat estimates for revenue and earnings per share.
Revenue for the quarter was $9.2 billion, beating estimates by $190 million. Revenue for the quarter increased 3.3% from the comparable quarter. For the year, revenue is now $28.5 billion, an increase of 11% from 2016. Wealth management has been leading revenue growth for the company. In the third quarter, wealth management revenue increased 9% to $4.2 billion. For the year, wealth management revenue is up 9% at $12.4 billion and represents 44% of the company's revenue.
Net income for the quarter was $1.8 billion, an increase of 12% from the comparable quarter. Earnings per share of 93 cents beat estimates by 12 cents and increased 15% from the comparable quarter. Net income for the year is now $5.5 billion, up 27% from 2016. Earnings per share of $2.79 are also higher for the year, increasing 32%. Wealth management was also a leading factor for earnings growth. The category increased net income 24% for the quarter and 28% for the year.
In a report following the company’s earnings release, CNBC provided more insight on the results.
Goldman Sachs (GS, Financial) and Morgan Stanley are the last two big banks to report earnings for the quarter.
Morgan Stanley is currently trading at $49.75 with a gain of 1.6% in morning trading. For the year, the stock is up 17.56%. Its one-year return is 56.24% and it has a three-year return of 49.52%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
