Morgan Stanley tops estimates as equities trading revenue exceeds expectations by $909 million - CNBC
Morgan Stanley reported a 12% revenue increase in the third quarter, largely driven by strong performance in its equities trading division. Despite this, the company's shares fell as other sectors like fixed income and investment banking underperformed expectations.
Why it matters
The bank's performance provides insight into the health of the financial sector and the broader impact of geopolitical instability on Wall Street.
Morgan Stanley posted third-quarter results that beat expectations on blockbuster results in its equities trading franchise.
The company said profit climbed 6.5% to $4.91 billion, or $3.03 a share. Revenue rose 12% to $20.34 billion.
The firm's equities trading division, long a marquee business for Morgan Stanley, posted a 41% increase in revenue to $5.8 billion, exceeding the StreetAccount estimate by about $909 million.
Morgan Stanley noted widespread strength across its equities products and regions, but cited Asia as a source of particular strength in the quarter. The gains in that business helped offset disappointments elsewhere.
Fixed income trading revenue fell 7% to $2.01 billion, driven by declines in credit and commodities, which is roughly $260 million below expectations.
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