Morgan Stanley (NYSE:MS) shares jumped in pre-market after the company delivered better than expected results for the first quarter. Both its EPS and the top line came in well above the expected level boosting investors’ confidence on the stock.
Morgan Stanley reported net income of $1.9 billion or $1.00 per share, up from $1.1 billion or 55 cents a share in the year-ago quarter. Street analysts estimated the company to report an EPS of 88 cents.
The company’s net revenues advanced to $9.7 billion from $7.8 billion in the previous year period thus bearing the expectations of $9.29 billion. While revenue from institutional securities grew to $5.15 billion from $3.71 billion, revenue from Wealth Management advanced to $4.058 billion from $3.668 billion. Similarly, its revenue from investment management jumped to $609 million from $477 million.
Morgan Stanley indicated that it repurchased about $750 million worth of shares in the first quarter. The company declared a quarterly dividend of 20 cents a share payable on May 15 to its shareholders, whose name appears on May 1. The company’s book value and tangible book value per share was $37.48 and $32.49 respectively at the end of March quarter.
Reacting to the results, the company’s chairman and CEO, James Gorman, said, “We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions. We are confident in our business model and the opportunities ahead, while recognizing that the environment remains uncertain.”
Morgan Stanley revealed that annualized return on average common equity was 10.7 percent.
At time of writing this, the stock is trading up 2.28 percent in pre-market trading on Wednesday.