Morgan Stanley reported fourth-quarter results that fell short of analyst estimates as revenue was hit by the same trading slowdown that hammered rivals and progress stalled on a key measure in the firm’s wealth management business.
Shares dropped about 2% in premarket trading as both per-share earnings and revenue fell short of what analysts were expecting.
The bank reported a profit of $1.04 billion compared with a year-earlier profit of $84 million. Stripping out one-time items and accounting adjustments, profits fell to 39 cents from 50 cents a year earlier. Analysts polled by Thomson Reuters had expected earnings of 48 cents a share.
Among other items, the latest quarter’s results include a tax gain of $1.4 billion and a compensation expense of $1.1 billion, while the year-earlier quarter included a pretax legal expense of $1.2 billion.
Revenue fell 1% to $7.76 billion, while revenue excluding accounting adjustments dropped 2.5% to $8 billion, coming in below analyst estimates for $8.08 billion.