These 2 Wall Street Giants Made Big Waves Post Earnings
Morgan Stanley (NYSE:MS) reported net income above Wall Street’s expectations for the third quarter. Net income for the investment brokerage rose to $2.2 billion ($1.15 per share) vs. a loss of $91 million (7 cents per share) in the same quarter a year earlier. Revenue rose 7% to $9.89 billion last quarter. MS beat the mean analyst estimate of 34 cents per share. It beat the average revenue estimate of $7.56 billion.
James P. Gorman, President and Chief Executive Officer, said, “Morgan Stanley effectively navigated turbulent markets while consolidating our market share gains with Institutional clients and demonstrating resilience across the Global Wealth Management business as evidenced by record net new assets flows since the formation of MSSB. The Firm delivered progress across many of our key initiatives, increasing client penetration in equity derivatives and interest rate products as well as achieving a significant milestone in the integration of MSSB with the initial roll out of our new technology platform. With our robust liquidity, diverse funding, strong capital and unique strategic partnership with MUFG, Morgan Stanley is well positioned to deliver for clients in the long term.”
Competitors to Watch: Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Deutsche Bank AG (NYSE:DB), UBS AG (NYSE:UBS), Mitsubishi UFJ Financial Group Inc (NYSE:MTU), Piper Jaffray Companies (NYSE:PJC), Jefferies Group, Inc. (NYSE:JEF), and General Electric Company (NYSE:GE).
BlackRock Inc. (NYSE:BLK) reported its results for the third quarter. Net income for BlackRock Inc. rose to $595 million ($3.23 per share) vs. $551 million ($2.83 per share) in the same quarter a year earlier. This marks a rise of 8% from the year earlier quarter. Revenue rose 6% to $2.23 billion from the year earlier. BLK reported adjusted net income of $2.83 per share. By that measure, the company beat the mean estimate of $2.74 per share.
“In a quarter marked by heightened economic uncertainty and declining markets, BlackRock’s broadly diversified, global platform delivered strong financial results – with revenue growth of 6% year-over-year and 15% growth in as adjusted operating income,” said Laurence D. Fink, Chairman and CEO of BlackRock. “Our ability to achieve an as adjusted operating margin of 40%, even in the current challenging environment, reflected both strong expense discipline and the benefits of product breadth across active and passive strategies. Our business continues to produce strong free cash flow and we remain committed to returning cash to shareholders.”
Competitors to Watch: Morgan Stanley (NYSE:MS), T. Rowe Price Group, Inc. (NASDAQ:TROW), American Intl. Group, Inc. (NYSE:AIG), Barclays PLC (NYSE:BCS), Bank of America Corp. (NYSE:BAC), Citigroup (NYSE:C), JP Morgan (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Invesco Ltd. (NYSE:IVZ), UBS AG (NYSE:UBS), Affiliated Managers Group, Inc. (NYSE:AMG), and Franklin Resources, Inc. (NYSE:BEN).