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Economy Title: Morgan Stanley Profit Beats Estimates on Higher Trading Revenue April 21 (Bloomberg) -- Morgan Stanley, in its first profit report under Chief Executive Officer James Gorman, posted earnings that beat analysts’ estimates as fixed-income trading revenue more than doubled from a year earlier. First-quarter net income was $1.78 billion, or 99 cents a share, compared with a loss of $177 million, or 57 cents, in the first quarter of 2009, the New York-based company said today in a statement. Earnings from continuing operations, including a 21-cent tax benefit, were $1.03 a share, compared with the 57- cent average estimate of 24 analysts surveyed by Bloomberg. Gorman, who succeeded John Mack in January, said in a letter to shareholders last week he was “not satisfied” with 2009 results and the firm had hired more than 350 employees as part of a “revitalization” of the sales and trading business. Morgan Stanley’s fixed-income results follow record revenue from debt trading reported earlier this month by Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc. “If you listen to James Gorman’s comments, he’s very clear that he wants the firm to be top three across their businesses and that would mean closing the gap in fixed-income and equities trading,” Howard Chen, an analyst at Credit Suisse Group AG, said before earnings were released. “Now it’s about disciplined execution -- putting up the numbers, allocating the appropriate amount of risk capital back into the business and managing that risk day-to-day.” Goldman Sachs Goldman Sachs reported fixed-income revenue of $7.39 billion yesterday. Bank of America and JPMorgan Chase, the two biggest U.S. banks by assets, both beat analysts’ earnings estimates last week as they reported fixed-income revenue of $5.52 billion and $5.46 billion, respectively. Morgan Stanley was the second-biggest U.S. securities firm before converting into a bank in September 2008, gaining the protection of the Federal Reserve in the wake of Lehman Brothers Holdings Inc.’s bankruptcy. Morgan Stanley has since altered its business model to rely less on trading and more on global wealth management and asset management. In June, the firm paid $2.75 billion to win control of a joint venture with Citigroup Inc.’s Smith Barney that includes about 18,000 financial advisers, the biggest brokerage force in the U.S. Morgan Stanley rose 3 percent to $30.45 in yesterday’s New York Stock Exchange composite trading. The stock, which advanced 85 percent in 2009, is still below where it traded before Lehman Brothers went bankrupt. SEC’s Case The shares fell 5.6 percent on April 16, as the SEC accused Goldman Sachs of failing to tell investors in a 2007 collateralized debt obligation that hedge fund Paulson & Co., which planned to bet against the CDO, played a part in selecting the underlying assets. Goldman Sachs has said the SEC’s case is “completely unfounded in law and fact” and that it plans to “vigorously contest” the case. “I think everyone is a little leery of just how deep the SEC is going to dig after what they’re finding at Goldman,” said Doug Ciocca, who helps oversee about $1.9 billion in assets, including Morgan Stanley shares, as managing director at Leawood, Kansas-based Renaissance Financial Corp. “You wonder who’s going to be spared, but you have to believe that the SEC led with its strongest hand.”
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#1. To: All (#0)
McDonalds blew estimates out of the water...so far the trend in 1Q earnings is STRONG...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
I saw that Apple was up around 15% this morning.
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