Morgan Stanley Beats Estimates, Abbott Laboratories Just Ahead

Morgan Stanley (MS) and Abbott Laboratories (ABT) released their latest earnings reports before opening bell this morning. Morgan Stanley reported 81 cents per share in earnings on $8.91 billion in revenue. Analysts had been expecting 63 cents per share in earnings on $8.13 billion in revenue. In last year’s third quarter, the firm reported 34 cents per share in earnings and $7.77 billion in revenue.

Abbott Laboratories posted earnings of 59 cents per share on $5.3 billion in revenue, compared to the consensus estimates of 58 cents per share and $5.29 billion.

Morgan Stanley rises on solid earnings

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Morgan Stanley’s net interest income rose to $885 million from $751 million, but it missed the consensus of $927 million. The firm’s institutional securities revenue grew to $4.55 billion from $3.9 billion, coming out ahead of consensus at $3.82 billion. Equity sales and trading revenue increased to $1.9 billion from $1.8 billion. Wealth management revenue rose to $3.88 billion from $3.64 billion in the year-ago quarter, beating the consensus of $3.75 billion. Investment management revenues rose to $552 million from $274 million last year.

The firm had a Common Equity Tier 1 ratio of about 16.9% and a Tier 1 risk-based capital ratio of 18.9% at the end of the quarter. Its estimated fully phased-in Common Equity Tier 1 ratio under the advanced approach was about 15.9%, while its pro forma fully phased-in Supplementary Leverage ratio was about 6.2%. Morgan Stanley’s book value per share was $37.11, while its tangible book value per share was $32.13.

Shares of Morgan Stanley rose by as much as 1.3% to $32.74 in premarket trades this morning.

Abbott Laboratories posts a loss

Abbott reported GAAP losses of 24 cents per share, mostly due to a negative adjustment of 66 cents per share related to the company’s equity investment in Mylan. Nutrition sales declined 5.7% year over year to $1.755 billion, while Diagnostics sales grew 5.3% to $1.2 billion. Established Pharmaceuticals sales increased 5.3% to $1 billion, while Medical Devices sales increased 6.7% to $1.3 billion.