|
Morgan Stanley net soars
|
 |
June 24, 1999: 9:26 a.m. ET
Broker earns $1.95 per share in 2Q, surpassing forecast of $1.56
|
NEW YORK (CNNfn) - Morgan Stanley Dean Witter & Co. Thursday posted a 35 percent increase in second-quarter net profit, results that trounced Wall Street expectations and reflected the strong performance of the brokerage's securities business and international operations.
Morgan Stanley (MWD), the nation's second largest brokerage after Merrill Lynch, earned $1.15 billion on a net basis, or $1.95 per diluted share, for the quarter ended May 31. Analysts had forecast earnings of $1.56 per diluted share, according to the consensus prediction reported by the First Call Corp.
In the year-earlier period, Morgan Stanley earned $852 million, or $1.37 per share.
Morgan Stanley said net revenue for the latest quarter totaled $5.7 billion, up from $4.6 billion in the year-earlier period.
"Our company is clearly reaping the benefits of the breadth and depth of our franchises, both in the U.S. and in markets around the globe," Morgan Stanley said in a statement.
Securities net income jumped to $829 million, up 54 percent from the 1998 period, Morgan Stanley said. The brokerage's European and Asian businesses were cited as major drivers of the results.
The securities earnings also include the results of Discover Brokerage Direct, the company's online brokerage unit, which experienced record account growth as trading volume grew 78 percent, Morgan Stanley said.
For the first six months of the year, the brokerage earned $2.19 billion, up 42 percent from the year-earlier quarter. Six-month diluted earnings per share totaled $3.71, a 50 percent increase over the $2.28 per-share earnings posted in the 1998 period. Net revenue for the six months rose 27 percent to $11 billion.
Morgan Stanley closed down 2-15/16 at 93-1/4 on Wednesday. 
|
|
|
|
|
 |
|
