MS Stock Rises 1% as Morgan Stanley Publishes Its Q2 Earnings Report

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by Tolu Ajiboye · 3 min read
MS Stock Rises 1% as Morgan Stanley Publishes Its Q2 Earnings Report
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After the published Q2 report, Morgan Stanley (MS) stock price is rising. As the market opened today MS stock is 0.78% up.

Earlier today, Morgan Stanley (NYSE: MS) published its Q2 2020 earnings results which crushed analysts’ predictions. The company’s net revenue turned out to be better than figures from a year ago, despite the current global economic situation. This year, net revenue hit $13.4, an increase over 2019 Q2’s $10.2 billion. Morgan Stanley earnings managed to hit $1.96 a share, beating Wall Street analysts’ forecast of. $1.17 a share. Analysts also predicted a total Q2 revenue of $10.78, almost $3 billion lower than it turned out to be.

Morgan Stanley Reports Q2 Earnings

Morgan Stanley, a financial services corporation is a global giant in common stocks, global depository and exchange-traded funds. Speaking on the Q2 results, James P. Gorman, Morgan Stanley Chairman and CEO, stated:

“Our decade long business transformation was intended to provide stability during times of serious stress. The second quarter tested the model and we performed exceedingly well, delivering record results. This builds on the momentum of a very strong first quarter, while more than 90% of our employees continue to work from home, demonstrating the ongoing operational resilience of our platform.”

After the published Q2 report, Morgan Stanley (MS) stock was up 1.27% in pre-market, reaching $52.00. Though the stock has managed to recover from its April low of around $30, it is still far away from the ATH around $89. At the market’s opening today, MS stock was up by 0.78%. Presently trading at $53.09, the stock has increased by 3.28% over its previous close of $51.35.

Recently, Morgan Stanley’s stock has been increasing significantly. With a surge of over 38% in the last three months, the financial institution also climbed 11.72% in the past month. In addition, MS rose almost 12% in the last five days.

Other Banks Release Q2 Report

Ahead of Morgan Stanley, other top US banks have released their Q2 earnings report. On the 14th July, JPMorgan Chase and Co (NYSE:JPM) reported a net income of $4.7 billion in the second quarter of 2020. Similarly, JPMorgan’s earnings also exceeded analysts’ predictions. Against the estimate of $30.3 billion in revenue, the company gained $33 billion. Goldman Sachs (NYSE: GS) and Citigroup (NYSE: C) also beat analysts’ predictions in their trading and investment banking results.

However, Wells Fargo (NYSE: WFC) reported a $2.4 billion loss in its second quarter. To a large extent, the loss was due to an $8.4 billion addition to its loan-loss reserves. The company’s revenue for Q2 fell over 17% compared to the $21.6 billion gained in the second quarter of 2019. As a result of the recent loss, Wells Fargo announced a cut in its dividend. Formerly at 51 cents per share, the company has reduced it to 10 cents per share for the next quarter.

 

Business News, Market News, News, Stocks, Wall Street
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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