Monday, April 18, 2016

Morgan Stanley profit down 53% and exceed analysts’ estimates – Jornal de Negócios – Portugal

The Morgan Stanley presented this Monday, April 18, its first quarter results that exceeded analysts’ estimates, with trading income down less than expected.

net income fell 53% in the first three months of the year to 1.13 billion dollars, or 55 cents per share, a figure that compares with 2390 million dollars or $ 1.18 per share in the same period last year. Profits thus exceeded the estimates of analysts surveyed by Bloomberg, pointing to the 47 cents per share.

Although the bank CEO, James Gorman, has shrunk the division trading of fixed income assets to focus on less volatile business of asset management, Morgan Stanley is still very exposed to falling markets that have penalized the results on Wall Street.

the company has followed the same JPMorgan’s strategy, Bank of America and Citigroup to cut costs to compensate for falling revenues.

in the first quarter, revenues decreased 21 % to 7,79 billion dollars, above analysts’ estimates of 7760 million dollars.

The trading revenues fell 9.3% to 2.06 billion dollars, while experts Citigroup pointed to a total of 1.93 billion dollars and Credit Suisse to 1.95 billion.

“The first quarter was characterized by challenging market conditions and an activity of moderate customers,” says Morgan Stanley said in a statement quoted by Bloomberg. “Although we are seeing some signs of recovery of the market, the global uncertainties continue to weigh on the activity of investors.”

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