Morgan Stanley Profit, Revenue Top Estimates

Morgan Stanley said Monday it had net income of $1.81 billion, or 85 cents a share, in the second quarter, compared with $1.89 billion, or 92 cents a share, in the year-earlier period. Excluding a debt valuation adjustment, per-share earnings came to 79 cents. Revenue totaled $9.7 billion, compared with $8.6 billion a year ago. The FactSet consensus was for EPS of 73 cents and revenue of $9.1 billion. Revenue from institutional securities came to $5.2 billion, up from $4.2 billion a year ago, buoyed by a strong performance in equity sales and trading, investment banking and an improved performance in fixed income, currencies and commodities sales and trading. The bank continues to be ranked number 1 in global IPOs and number 2 in global announced M&A. Wealth management revenues came to $3.9 billion, up from $3.7 billion, and investment management revenues rose to $751 million from $705 million. Shares were up nearly 4% in light premarket volumes, and are up 3.6% in the year so far, while the S&P 500 has gained 3.3%.