Tallahassee Journal

Morgan Stanley slumps on fourth-quarter results

Morgan Stanley slumps on fourth-quarter results

Morgan Stanley slumped 2% T to $34.17 Tuesday after it posted lower-than-expected revenue and profits for the fourth quarter. The investment bank reported adjusted earnings of 39 cents a share, vs. 2 cents for the year-ago quarter and consensus estimates of 47 cents a share. Revenue came in flat at $7.8 billion, vs expectations of $8.08 billion.635572787713087031-AP-Facebook-IPO-Morgan-Stanley

Morgan Stanley said $1.1 billion in compensation expenses adjustments accounted for a loss of 40 cents a share, while other accounting measures and legal expenses cost another 29 cents a share. That was offset by a $1.4 billion, 70-cent-a-share tax benefit. The company said its equity sales and trading revenues increased 6.7% to $1.6 billion for the quarter, but underwriting revenues on stocks and bonds fell 11% to $807 million from $911 million in the year-ago quarter.

“We finished 2014 in substantially better shape than we entered the year,” said CEO James Gorman. “We delivered strong results across several of our businesses, although overall performance was affected by the choppy market conditions of the fourth quarter. We also addressed a number of items that, while affecting our results in the short term, position us well in the years ahead. Entering 2015, we remain confident about our business mix, market position and the opportunities ahead of us.”

Morgan Stanley is among the last big investment bank to post fourth-quarter results. Earlier this month, Goldman Sachs said profits fell to $2.17 billion from $2.33 billion in the year-ago quarter on revenue of $7.69 billion, down 12.4% from the year-ago quarter.