Morgan Stanley gains in premarket on upbeat earnings

Morgan Stanley’s (MS.US) shares rose nearly 2.0% in premarket as quarterly earnings beat market expectations partially thanks to record wealth management revenue, which overshadowed weak dealmaking figures.

• On an adjusted basis, the bank earned $1.31 per diluted share, while profit applicable to the company's common shareholders in Q4 was $2.11 billion or $1.26 per diluted share. Refinitiv analysts expected profits of $1.19 per share.

• Revenue of $12.75 billion also topped Wall Street projections of $12.64 billion, according to Refinitiv

• Wealth management division recorded record net revenues of $6.63 billion in the latest quarter, which is a 6% increase compared to last year.

• “We reported solid fourth quarter results amidst a difficult market environment,” Chairman and CEO James Gorman said in a statement. “Overall, 2022 was a strong year for the Firm as our clear strategy and balanced business model enabled us to deliver an ROTCE of 16% despite the complex macro backdrop.”

Morgan Stanley’s (MS.US) stock jumped in pre-market and is approaching the upper limit of the local 1:1 stricture. Should a break higher occur, the road towards major resistance at $110.15 will be left open. Source: xStation5