Morgan Stanley Q4 Results Top Street Estimates

Morgan Stanley MS reported better-than-expected fourth quarter earnings and revenue, driven by strong performance at its sales, trading and M&A businesses.

Morgan Stanley reported fourth quarter EPS of $0.81 on revenue of $9 billion, topping Street view of $0.65 and $8.5 billion, respectively.

For the quarter, net income applicable to Morgan Stanley shareholders was $1.7 billion,versus $908 million for the same period a year ago.

Sales and Trading net revenues rose to $3.2 billion from $2.3 billion a year ago. Advisory revenues of $628 million increased from $516 million last year on higher levels of completed M&A activity.

Fixed income underwriting revenues rose to $421 million from $346 million in the prior year quarter driven by higher non-investment grade loan and bond fees. That said, lower IPO volumes hit its equity underwriting revenues, which fell to $225 million from $352 million a year-ago.

As of December 31, 2016, the company’s Common Equity Tier 1 and Tier 1 risk-based capital ratios under Advanced Approach transitional provisions were about 16.8 percent and 19.0 percent, respectively.

“We reported solid results in Sales & Trading and Advisory, and record revenues in Wealth Management, while managing expenses prudently. We are optimistic about opportunities in 2017 and beyond and remain focused on serving our clients and achieving our strategic objectives,” James Gorman, Chief Executive Officer, said in a press release.

Shares of Morgan Stanley closed Friday at $43.81. In the pre-market hours Tuesday, the stock is up 2.3 percent at $44.85.