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Morgan Stanley Shares Rally on Q4 Results (MS)

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Morgan StanleyShares of Morgan Stanley (NYSE: MS) rose sharply in trading on Thursday after the New York City-based bank announced its fourth-quarter financial results.

For the fourth quarter ended December 31, 2011, Morgan Stanley reported loss from continuing operations of $227 million, or $0.14 per share, compared with income from continuing operations of $871 million, or $0.44 per share reported for the same period in the previous year. The company’s net revenue for the quarter came in at $5.7 billion, compared with $7.7 billion reported for the same period in the previous year.


Morgan Stanley’s advisory revenue for the quarter fell 16% to $406 million. The bank’s underwriting revenue for the quarter plunged 54% to $477 million.

For the full year ended December 31, 2011, Morgan Stanley reported income of $4.2 billion, or $1.26 per share, compared with income of $4.5 billion, or $2.45 per share reported for the same period in the previous year. The company’s net revenue for the full year was $32.4 billion, compared with $31.4 billion reported in 2010.

Morgan Stanley’s compensation expense for 2011 was $16.4 billion, with compensation to net revenue ratio of 51%.

James P. Gorman, Chairman and CEO of Morgan Stanley, said that for the past year, the bank has made enormous progress by addressing a number of outstanding strategic and legacy issues. Gorman said that these included the conversion of MUFG’s preferred investment into common stock and the settlement with MBIA. Gorman also said that the bank achieved market share gains across its institutional businesses as well as significant net flows into its Global Wealth Management and Asset Management platforms and ended the year in a better shape than were it started.

Morgan Stanly shares rose to an intra-day high of $18.60 and ended the day 5.36% higher at $18.28 on above average volume of 46.37 million.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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