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April 16, 2021, 7:48 a.m. EDT

Morgan Stanley's profit more than doubles to a record and beats expectations, but stock falls

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By Tomi Kilgore

Shares of Morgan Stanley /zigman2/quotes/209104354/composite MS +2.22% fell 1.3% in premarket trading Friday, even after the financial services company reported first-quarter profit that more than doubled and revenue that jumped 60% to record levels, boosted by strength in the institutional securities business. Net income rose to $3.98 billion, or $2.19 a share, from $1.59 billion, or $1.01 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came in at $2.22, above the FactSet consensus of $1.72. Revenue rose 60.7% to $15.72 billion, beating the FactSet consensus of $14.10 billion, as institutional securities (IS) revenue grew 65.6% to $8.58 billion to top expectations of $7.25 billion. Within IS, equity revenue increased 17.4% to $2.88 billion and fixed income revenue increased 43.8% to $2.97 billion. Net interest income rose 49.6% to $2.03 billion, above the FactSet consensus of $1.60 billion. The company said it repurchased $2.1 billion worth of its stock during the quarter. The stock has rallied 17.9% year to date through Thursday, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF +1.21% climbed 19.2% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.97% gained 11.0%.

/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 86.74
+1.88 +2.22%
Volume: 914,768
May 14, 2021 10:10a
P/E Ratio
11.39
Dividend Yield
1.61%
Market Cap
$157.89 billion
Rev. per Employee
$767,250
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/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 37.74
+0.45 +1.21%
Volume: 5.34M
May 14, 2021 10:10a
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/zigman2/quotes/210599714/realtime
US : S&P US
4,152.31
+39.81 +0.97%
Volume: 312.71M
May 14, 2021 10:10a
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