By
Bena Ilyas
April 25th, 2024
Morgan Stanley recorded net revenues of $14.5 billion and $59.8 billion during the fourth quarter and full-year respectively.
Morgan Stanley (NYSE: MS) stock closed January 19, 2022, trading at $95.73, after adding 1.83% during the day. MS shares continued with the gains during the extended trading period with approximately 0.51%. The financial services corporation Morgan Stanley reported its 2021 and Q4 earnings results on Wednesday. Notably, the bank topped analyst expectations according to media outlet CNBC.
According to the earnings report, Morgan Stanley recorded net revenues of $14.5 billion and $59.8 billion during the fourth quarter and full-year respectively. During the fourth quarter, the company reported earnings per diluted share of $2.01 compared to $1.81 in Q4 2020. As for the full year, the bank recorded earnings per diluted share of $8.03 compared to $6.46 in the prior year.
James P. Gorman, Chairman, and Chief Executive Officer said, “2021 was an outstanding year for our Firm. We delivered record net revenues of $60 billion and a ROTCE of 20%, with stand-out results in each of our business segments. Wealth Management grew client assets by nearly $1 trillion to $4.9 trillion this year, with $438 billion in net new assets. Combined with Investment Management, we now have $6.5 trillion in client assets. Our integrated investment bank has continued to gain wallet share. We have a sustainable business model with scale, capital flexibility, momentum, and growth.”
According to a survey conducted by Refinitiv, analysts expected the company to report EPS of $1.91 on revenue of $14.6 billion.
Morgan Stanley Stock after Q4 Earnings Report
Following a successful year in 2021, Morgan Stanley stock gained approximately 27.91% according to market data provided by MarketWatch. However, as with other major US stocks, MS shares are down year to date, approximately 2.48%, and 7.10% in the past five days.
The bank has a market capitalization of approximately $168.69 billion and 1.79 billion shares outstanding. Having been rated 28 times, MS shares received an average rating of Over.
Speaking with analysts during a conference call, CEO Gorman said he has a few years left to hand the leadership to someone else.
“I’m not leaving now, and I’m not going to be here in five years,” he told analyst Mike Mayo. “I’ll be here a few years and I want to see these integrations done. I want to see us firmly on this path and I want to hand it over to somebody else who can take us through the next decade.”
During the fourth quarter, Morgan Stanley repurchased shares worth $2.8 billion as part of its program.