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July 16, 2020, 7:32 a.m. EDT

Morgan Stanley's stock gains after big profit beat, amid strength in trading and investment banking

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By Tomi Kilgore

Shares of Morgan Stanley /zigman2/quotes/209104354/composite MS -3.45% rose 0.5% in premarket trading Thursday, after the banking and brokerage services company reported a second-quarter profit that rose above expectations, amid strength in the trading and investment banking businesses. Net income increased to $3.20 billion, or $1.96 a share, from $2.20 billion, or $1.23 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.12. Revenue 30.9% to $13.41 billion. Noninterest revenue grew 28% to $11.81 billion, to beat the FactSet consensus of $9.36 billion and net interest income rose 31% to $1.60 billion to top expectations of $985.2 million. Within noninterest revenue, trading revenue soared 71% to $4.68 billion and investment banking revenue jumped 35% to $2.14 billion. "The second quarter tested the model and we performed exceedingly well, delivering record results," said Chief Executive James Gorman. "This builds on the momentum of a very strong first quarter, while more than 90% of our employees continue to work from home, demonstrating the ongoing operational resilience of our platform." The stock has rallied 33.9% over the past three months through Wednesday, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -2.52% has advanced 13.5% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.23% has gained 15.3%.

/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 48.35
-1.73 -3.45%
Volume: 10.15M
Sept. 21, 2020 3:58p
P/E Ratio
8.71
Dividend Yield
2.90%
Market Cap
$78.96 billion
Rev. per Employee
$831,709
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/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 23.93
-0.62 -2.52%
Volume: 61.65M
Sept. 21, 2020 3:58p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,278.59
-40.88 -1.23%
Volume: 2.47B
Sept. 21, 2020 3:58p
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