Morgan Stanley share price up 2% after Q1 earnings revenue beat

The US bank tops earnings and revenue estimates in its Q1 earnings report.

Morgan Stanley logo after Morgan Stanley Q1 earnings Source: Bloomberg

Morgan Stanley share price jumped by 2% after reporting its Q1 profits. Morgan Stanley’s Q1 earnings outperformed Wall Street expectations.

Morgan Stanley earnings:key figures

Earnings per share $1.39
Revenue $10.29 billion
Net Profits $2.4 billion
Wealth management $4.39 billion

Morgan Stanley share price up 2% after Q1 earnings revenue beats estimates

Morgan Stanley Q1 earnings per share was $1.33, surpassing the $1.17 financial experts expected. Morgan Stanley profits totaled $2.4 billion. Morgan Stanley Q1 revenue was $10.29 billion, more than the predicted $9.94 billion. The bank’s wealth management division had $4.39 billion in revenue, far exceeding projections by $200 million.

Chief executive officer, James Gorman, noted that the company had strong revenue despite the volatility of the US economy in late 2018 and Brexit uncertainty.

‘We delivered solid earnings despite a slow start to the year following the turbulent markets in the fourth quarter. Even though risks to the global environment remain, markets have recovered and we are well positioned to serve our clients and invest in our businesses,’ said Gorman.

Despite the increase in revenue overall, Morgan Stanley’s Q1 earnings report wasn’t all positive. Morgan Stanley’s Q1 revenue in equities trading dropped to $2.02 billion and investment banking profits fell to $1.15 billion. The investment bank had decline in revenue from bond markets as well.

How did Morgan Stanley’s Q1 results compare to other bank stocks?

Morgan Stanley’s Q1 earnings are positive compared to Goldman Sachs earnings. Goldman Sachs had a mixed profits report, with high earnings and low revenue.

What does Morgan Stanley plan for Q2 profits?

The bank plans to increase Q2 earnings with its purchase of the online equity plan management company Solium Capital. Gorman spoke about how the acquisition will help Morgan Stanley’s profits.

‘Solium will enable us to bring together a major stock plan administration platform with the leading wealth management business and position us to be a top-tier provider in the workplace wealth space,’ said Gorman.

Morgan Stanley Q1 earnings show strength despite economic uncertainty

Morgan Stanley’s Q1 results grew because of higher interest income from lending to clients and the steadiness of its wealth management division. Morgan Stanley’s Q1 profits prove that the global economic volatility hasn’t affected all of the US big banks.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

See opportunity on a stock?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Trade a wide range of popular global stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform, when it matters

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.