Morgan Stanley 4Q earnings miss estimates

Morgan Stanley reported fourth-quarter earnings per share of $0.80 on revenue of $8.5 billion on Thursday. Analysts expected profit per share of $0.89 on revenue of $9.24 billion.

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On an adjusted basis due to a $0.07 tax benefit, EPS came in at $0.73.

Shares turned lower following the release of results.

Morgan Stanley had beaten expectations in each of the last eight quarters.

Fixed income revenue fell 30 percent to $564 million, while equities revenue was flat.

"The bank does not think the down fourth quarter is 'the new normal," said Morgan Stanley CEO James Gorman in comments to analysts.

In the year ago period, the bank reported per share profit of $0.29 on revenue of $9.5 billion.

Morgan Stanley points to the market volatility for the revenue miss.

TickerSecurityLastChangeChange %
MSMORGAN STANLEY43.66+0.22+0.51%
JPMJP MORGAN CHASE & CO.120.56+0.21+0.17%
GSGOLDMAN SACHS GROUP INC.206.52+0.06+0.03%
CCITIGROUP INC.69.74+0.14+0.20%

“In 2018 we achieved record revenues and earnings, and growth across each of our business segments – despite a challenging fourth quarter," said James Gorman, Chairman and Chief Executive Officer. "We delivered higher annual returns, producing an ROE of 11.8% and ROTCE of 13.5%, as we continued to invest in our businesses."

"While the global environment remains uncertain, our franchise is strong and we are well positioned to pursue growth opportunities and serve our clients,” added Gorman.

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Third-quarter earnings per share came in at $1.17 on revenue of $9.87 billion.

The board of directors declared a $0.30 quarterly dividend per share, payable February 15.