Morgan Stanley & Co. posted second-quarter earnings that topped analysts’ estimates, with fixed-income trading revenue of $3.03 billion nearly-tripling the $1.81 billion prediction. Bloomberg’s Tom Keene, Jonathan Ferro, and Sonali Basak report on “Bloomberg Surveillance.”
Morgan Stanley reports Q2 adjusted EPS of $2.04 versus the consensus estimate of $1.12. The company reports Q2 revenue of $13.4B versus the consensus estimate of $10.31B.
James P. Gorman, Chairman and Chief Executive Officer, said, “Our decade long business transformation was intended to provide stability during times of serious stress. The second quarter tested the model and we performed exceedingly well, delivering record results. This builds on the momentum of a very strong first quarter, while more than 90% of our employees continue to work from home, demonstrating the ongoing operational resilience of our platform. We remain focused on supporting our employees, communities, and clients, while managing our risk and continuing to invest in our businesses.”
Morgan Stanley’s fixed income and trading had its best performance in 10 years.
On July 8, 2020, Seaport Global analyst Jim Mitchell initiated coverage of Morgan Stanley (MS) with a Buy rating and $61 price target. He thinks investors are underestimating the value of the E-Trade (ETFC) acquisition, the bank’s “significant” excess capital position, and potential upside in its institutional business, Mitchell said.