Proactive Investors - Run By Investors For Investors

Morgan Stanley's fourth quarter earnings beat forecasts

Morgan Stanley expects to benefit from rising interest rates and the US tax reform
Morgan Stanley
Morgan Stanley took a one-off charge of US$1.0bn for US tax changes

Morgan Stanley (NYSE:MS) reported fourth quarter earnings that beat forecasts as its wealth management revenue rose to a record.

Earnings per share (EPS) rose to 84 cents in the quarter ended December 31, excluding a US$900mln hit resulting from recent changes to US tax law.

It compared to 74 cents in the year-ago period and analysts’ expectations of 77 cents.

Including a one-off charge of US$1.0bn for the tax changes, EPS was 29 cents.

Revenue rose to US$9.5bn from US$9.0bn a year ago, ahead of estimates of US$9.2bn.

Wealth management revenues rose to a record US$4.4bn from US$4.0bn a year ago while investment banking increased to US$1.4bnb from US$1.3bn.

Looking ahead, the company expects to benefit from Donald Trump’s tax reform, which includes cutting the corporate tax rate to 21% from 35%.

“We enter 2018 with strong momentum aided by rising interest rates, tax reform and an evolving regulatory framework,” said chief executive James Gorman.

Shares climbed 0.62% to US$55.69 each.

View full MS profile View Profile

Morgan Stanley Timeline

Related Articles

April 12 2019
On the back of last year’s sell-off, APQ sees good value in emerging markets, particularly in Turkey, Argentina and Brazil.
February 28 2019
Investment company Adamas, under Harmony Capital’s management, is focused on opportunities in the SME sector
July 08 2019
Analysts at Hardman & Co Research said RM offers investors predictable revenue streams and a high dividend yield
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use