Morgan Stanley (NYSE:MS): Second-quarter profits were down for the provider of financial products and services, which reported a loss of $558 million (38 cents per diluted share) in the quarter. The investment brokerage had net income of $1.96 billion or $1.09 per share in the year earlier quarter. Revenue was $9.28 billion last quarter. MS beat the mean analyst estimate of a loss of 63 cents per share. It beat the average revenue estimate of $8.04 billion.
James P. Gorman, President and Chief Executive Officer, said, “While global markets remained challenging this quarter, the Firm delivered higher year-over-year revenues across our three major business segments. Within Institutional Securities, our premier investment-banking franchise ranked #1 in global completed M&A during the quarter and had the highest second-quarter revenues since 2007. Equities achieved further client gains as revenues rose despite a fall in overall market volumes, while Fixed Income showed continued progress and Wealth Management delivered its highest revenues and FA productivity since the MSSB joint venture was formed and had positive flows, as did Asset Management. With respect to costs, our re-engineering initiative and additional expense management efforts underscore our focus to ensure that shareholders benefit from our progress. We also completed the previously announced preferred stock conversion with MUFG, resulting in a one-time, non-cash charge this quarter but removing a significant yearly dividend payment and boosting the Firm’s Tier one common ratio to an industry-leading level. With this additional capital cushion and the clear momentum across our main businesses, we are well positioned to help our clients navigate the constantly changing markets and create additional value for our shareholders.”
Microsoft Corp. (NASDAQ:MSFT): The company, which develops, licenses and supports a range of software products and services for a variety of computing devices, reported net income above Wall Street’s expectations in the second quarter. Net income for Microsoft Corporation rose to $5.87 billion (69 cents per share) vs. $4.52 billion (51 cents per share) in the same quarter a year earlier. This marks a rise of 29.9% from the year earlier quarter. Revenue ose 8.3% to $17.37 billion from the year earlier quarter. MSFT beat the mean analyst estimate of 58 cents per share. Analysts were expecting revenue of $17.25 billion.
“Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion,” said Peter Klein, chief financial officer at Microsoft. “Our platform and cloud investments position us for long-term growth.”
Competitors to Watch: Google Inc. (NASDAQ:GOOG), Novell, Inc. (NASDAQ:NOVL), Oracle Corporation (NASDAQ:ORCL), Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Yahoo! Inc. (NASDAQ:YHOO), Apple Inc. (NASDAQ:AAPL), Adobe Systems Incorporated (NASDAQ:ADBE), Intel Corporation (NASDAQ:INTC), and Sony Corporation (NYSE:SNE).