Morgan Stanley’s Second Quarter Earnings, Revenues Soundly Beat Analysts’ Estimates

Morgan Stanley (MS) posted the second-quarter earnings boosted by robust trading revenue, crushing analysts’ expectations.

The bank recorded net income of $3.2 billion, or $1.96 a share -- 84 cents above analysts' estimate of $1.12 a share; revenues jumped 30%, from $10.3 billion to $13.4 billion, a record that bettered expectations of $10 billion.

Morgan Stanley operates Wall Street's largest stock-trading business, one that has flourished this year.

The bank’s institutional securities division reported net revenues of $8 billion, compared with $5.1 billion in last year's second quarter. The unit’s pre-tax income stood at $3 billion, compared with $1.5 billion in 2019. .

Morgan Stanley’s key wealth management unit posted net revenues of $4.7 billion, compared with $4.4 billion a year ago. Pre-tax income amounted to $1.1 billion.

“Our decade long business transformation was intended to provide stability during times of serious stress,” said Morgan Staley Chairman and Chief Executive Officer James P. Gorman. “The second quarter tested the model and we performed exceedingly well, delivering record results.”