Morgan Stanley and BlackRock released their latest earnings reports before opening bell this morning. Morgan Stanley posted earnings of $1 per share on $9.7 billion in revenue, compared to the consensus estimates of 89 cents per share and $9.3 billion. In last year’s first quarter, the firm reported $7.8 billion in revenue and 55 cents per share.
BlackRock reported adjusted earnings of $5.25 per share, against the consensus of $4.89 per share, on $2.82 billion in revenue, compared to the $2.87 billion Wall Street was looking for. In last year’s first quarter, the firm reported adjusted earnings of $4.25 per share and $2.62 billion in revenue.
Morgan Stanley posts strong results across segments
Morgan Stanley’s Institutional Securities revenue rose to $5.2 million from $3.7 million last year, while its Wealth Management revenues rose to $4.1 billion from $3.7 billion last year. Investment Management revenues rose to $609 million from $477 million a year ago, and Firm revenues increased to $9.7 billion from $7.8 billion last year.
Morgan Stanley’s sales and trading revenues edged lower to $2 billion from $2.1 billion last year. Investment banking revenue rose to $1.4 billion from $990 million last year. Advisory revenue fell to $496 million from $591 million last year, while equity underwriting revenue surged to $390 million from $160 million a year ago. Debt underwriting revenue rose to $531 million from $239 million last year.
“We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions,” Chairman and CEO James Gorman said in a statement. “We are confident in our business model and the opportunities ahead, while recognizing that the environment remains uncertain.”
Shares of Morgan Stanley jumped by as much as 2.35% to $42.18 in premarket trades this morning.
BlackRock records strong inflows
BlackRock’s GAAP earnings amounted to $5.23 per share, up from $3.92 per share in the same quarter a year ago. Long-term net inflows were $80 billion. Retail net flows amounted to $4.6 billion in the first quarter, with $5 billion in inflows coming from its international operations and $400 million in outflows coming from the U.S. Institutional active long-term net outflows amounted to $1 billion. iShares ETFs net flows were $64.5 billion. Institutional active net outflows were $1 billion, while institutional index long-term net inflows were $12.2 billion.
“Alpha generation, risk management and technology have always been the cornerstone of BlackRock,” Chairman and CEO Laurence Fink said in a statement. “As the world becomes increasingly complex and interconnected, technology is becoming even more essential to clients, transforming the way both institutions and wealth managers construct portfolios, manage asset allocation, understand risk and engage and connect with clients.”
Shares of BlackRock were little changed in premarket trading at $383.90.