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Morgan Stanley tops Street
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March 25, 1999: 9:26 a.m. ET
Broker cites strength in stocks, investment banking as income surges
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NEW YORK (CNNfn) - Morgan Stanley Dean Witter & Co. said Thursday earnings soared 81 percent in its first quarter, easily beating forecasts on Wall Street, as strength in financial markets boosted results.
The results make Morgan Stanley (MWD) the latest broker to profit from the rally on Wall Street in early 1999. The nation's second-biggest brokerage said higher commissions from stock trading, soaring profits from trading for its own account and strength in investment banking pushed net revenue up about 32 percent in the quarter.
The New York-based investment house said net income rose to $1.04 billion, or $1.76 a diluted share, in its first quarter, ended Feb. 28, from $574 million, or 91 cents a share, a year earlier. The year-ago period included a loss of $117 million, or 19 cents a share, for accounting changes.
The results soundly beat average forecasts of $1.33 a share, according to First Call, which tracks analysts' estimates.
Net revenue rose to $5.35 billion from $4.04 billion. Revenue from commissions jumped 21.5 percent to $665 million while investment banking revenue grew 19.6 percent to $957 million.
Revenue from trading for its own account more than doubled to $1.96 billion.
Morgan Stanley stock rose ½ to 98-3/8 Wednesday. 
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Morgan Stanley
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