Morgan Stanley Results Not So Hot, but Better Than Last Year

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Morgan Stanley logo

Morgan Stanley (NYSE: MS) reported first-quarter 2013 results before markets opened this morning. The bank reported adjusted diluted quarterly earnings per share (EPS) of $0.50 on revenues of $8.2 billion. In the same period a year ago, Morgan Stanley reported an adjusted EPS loss of $0.05 on revenues of $6.9 billion. First-quarter results also compare to the consensus estimates for EPS of $0.57 on revenues of $8.35 billion.

Excluding adjustments for debt valuation, the bank's revenues totaled $8.9 billion and EPS totaled $0.61. The adjustment for debt valuation totaled $317 million in the quarter, compared with a $2 billion adjustment in the first quarter of 2012.

The bank's CEO said:

Morgan Stanley demonstrated solid momentum across the Firm this quarter, consistent with the strategic objectives we laid out at the beginning of the year. … Looking forward, while the global environment continues to have moments of fragility, we believe the broad economic outlook for the next several years is stronger than in the recent past.

The bank said its Basel I Tier 1 capital ratio is about 13.9% and its Tier 1 common ratio is about 11.5%.

Morgan Stanley had no comments in its release regarding guidance. The consensus estimates for the second quarter calls for EPS of $0.51 on revenues of $8.03 billion. For the full year, EPS is expected to total $2.09 on revenues of $32.32 billion.

Shares are down about 1% in premarket trading this morning, at $21.25 in a 52-week range of $12.26 to $24.47. Thomson Reuters had a consensus analyst price target of around $23.90 before today's results were announced.

Filed under: 24/7 Wall St. Wire, Banking & Finance, Earnings, Financial Stocks Tagged: MS