Morgan Stanley posts surprising 4Q profits
Morgan Stanley announced on Wednesday that it saw a $617 million profit in it’s 4th quarter of reporting with $413 million coming from continuing operations which translates to 14 cents a share. The profits still fall short of Wall Street forecasts which expected a gain of 36 cents a share. “In a year of transition for our firm and the entire financial services industry, the employees of Morgan Stanley delivered substantially improved financial performance while also making significant progress on critical strategic initiatives that will drive our business in the years ahead,” CEO James Gorman said in a statement Wednesday morning.
It seems Morgan Stanley is turning things around when your analyze their figures; compared to a year ago revenue rose 29%. After three straight quarterly losses from the time of 2008-2009 today’s announcement is Morgan Stanley’s second straight quarterly profit. A statement from the company said that revenue doubled from a year ago, excluding gains and losses tied to changes in Morgan Stanley’s debt-related credit spreads. The company was also able to help with the economic recovery by adding some 19,000 employees through the creation of the Morgan Stanley Smith Barney joint venture with Citigroup
Morgan Stanley shares, which have risen 4% so far this year, were flat in early trading Wednesday.