Breaking: Morgan Stanley (MS) beats, shares rise after CEO says Archegos losses are all out in Q1
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UNLOCK OFFERConference call update: CEO says all losses relating to Archegos are reflected in Q1 earnings. This means the bank smashed estimates even with the Archegos loss. CEO says money spent to de-risk from Archegos was money well spent and necessary. Shares popped and are now up at $81.15, +0.4%. MS shares had dropped as low as $79 before the statement.
Update: Morgan Stanley said revenue from institutional securities (i.e. stocks, to you and me) was up 66% in Q1 2021, fixed income (bonds) was up 44%, and investment banking revenues were up 128% in Q1 versus Q1 2020. All in all, a stellar performance. But it is not all rosy.
Morgan Stanley also said, "The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event." I wonder who that could be?
Morgan Stanley reported Q1 2021 earnings on Friday. Earnings per share came in at $2.22 versus $1.70 forecast. Revenue was $15.7 billion versus $14.09 billion forecast.
Market reaction
Morgan Stanley (MS) shares are trading at $80, down 1%.
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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Conference call update: CEO says all losses relating to Archegos are reflected in Q1 earnings. This means the bank smashed estimates even with the Archegos loss. CEO says money spent to de-risk from Archegos was money well spent and necessary. Shares popped and are now up at $81.15, +0.4%. MS shares had dropped as low as $79 before the statement.
Update: Morgan Stanley said revenue from institutional securities (i.e. stocks, to you and me) was up 66% in Q1 2021, fixed income (bonds) was up 44%, and investment banking revenues were up 128% in Q1 versus Q1 2020. All in all, a stellar performance. But it is not all rosy.
Morgan Stanley also said, "The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event." I wonder who that could be?
Morgan Stanley reported Q1 2021 earnings on Friday. Earnings per share came in at $2.22 versus $1.70 forecast. Revenue was $15.7 billion versus $14.09 billion forecast.
Market reaction
Morgan Stanley (MS) shares are trading at $80, down 1%.
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
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