17 Apr

Morgan Stanley’s Q1 Earnings Fell 4%, Beat the Estimates

WRITTEN BY Rekha Khandelwal, CFA

Morgan Stanley’s first-quarter results

Morgan Stanley (MS) reported its first-quarter results on April 17. The company reported an EPS of $1.39, which beat the consensus estimates of $1.17 per share. Morgan Stanley’s EPS fell 4% YoY (year-over-year), while its revenues fell 7% YoY. The company’s investment banking revenues fell 24% YoY, while its sales and trading revenues fell 15% YoY.

Morgan Stanley’s Q1 Earnings Fell 4%, Beat the Estimates

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The fall in Morgan Stanley’s revenues reflected lower client activity during the quarter, which also impacted Goldman Sachs’ (GS) results. Wealth Management’s revenues were flat YoY.

“We delivered solid earnings despite a slow start to the year following the turbulent markets in the fourth quarter. With an ROE of 13.1% and ROTCE of 14.9%, our results demonstrated the stability and breadth of our global franchise,” noted James P. Gorman, Morgan Stanley’s chairman and CEO.

Morgan Stanley controlled its costs during the challenging quarter with an ~$263 million YoY reduction in its compensation expenses and an ~$63 million reduction in its non-compensation expenses.

JPMorgan Chase (JPM) reported its earnings on April 12. Read JPMorgan Chase Reported Strong Q1 Numbers to learn more. Citigroup (C) reported its earnings on April 15.

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