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Morgan Stanley’s stock rallied Tuesday to its largest single-day gain since late 2020, after its second-quarter profit and revenue beat analyst expectations on a boost from its wealth management business.
Morgan Stanley
MS,
stock is up about 6.5% in midday trades. The stock is on pace for its largest percent increase since November 2020, when it rose by 8.4%, according to Dow Jones Market Data.
If the gains hold through the session, the stock will end a trading day at the highest level since March 9, 2023, when it closed at $92.20.
The bank said its profit for the three months ending June 30 fell 14% to $2.05 billion, or $1.24 a share from $2.39 billion, or $1.39 per diluted share, in the year-ago quarter.
Analysts were looking for earnings of $1.20 a share, according to estimates compiled by FactSet.
Morgan Stanley’s second-quarter revenue rose to $13.5 billion from $13.1 billion a year ago — well ahead of the analyst estimate of $13.02 billion.
“We remain confident in our ability to grow in various market environments while maintaining a strong capital position,” said Morgan Stanley CEO James P. Gorman.
Morgan Stanley’s wealth-management unit reported second-quarter revenue of $6.7 billion, up from $5.7 billion a year ago.
Its institutional-securities unit reported a drop in revenue to $5.62 billion from $6.12 billion. The unit includes Morgan Stanley’s investment bank, which saw its revenue remain about flat at $1.16 billion. Its trading revenue rose 6% to $3.8 billion, while asset management revenue dipped 2% to $4.8 billion.
Meanwhile, total non-interest expenses rose 8% to $10.48 billion, driven by higher compensation costs and other items.
Bank of America Corp.
BAC,
also reported second-quarter earnings on Tuesday, as the bank powered past Wall Street expectations.
Also read: Bank of America’s stock rises after second-quarter earnings and revenue beat expectations
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