=Morgan Stanley (MS) reported earnings on Thur 17 Jan 2019 (b/o)

Morgan Stanley misses by $0.09, misses on revs

• Reports Q4 (Dec) earnings of $0.80 per share, $0.09 worse than the S&P Capital IQ Consensus of $0.89; revenues fell 10.0% year/year to $8.55 bln vs the $9.32 bln S&P Capital IQ Consensus. 
• Firm net revenues were negatively impacted by the volatile global market environment.
• Institutional Securities net revenues reflect strong results in investment banking with particular strength in M&A advisory and solid results in equity sales and trading. Lower performance in fixed income sales and trading reflects the market volatility. Institutional Securities reported pre-tax income from continuing operations of $780 million compared with $1.2 billion a year ago. Net revenues for the current quarter were $3.8 billion compared with $4.5 billion a year ago. Investment Banking revenues of $1.4 billion were essentially unchanged from a year ago; sales and Trading net revenues of $2.5 billion decreased from $2.7 billion a year ago.
• Wealth Management reported pre-tax income from continuing operations of $1.0 billion compared with $1.2 billion a year ago. The quarter's pre-tax margin was 24.4%. Net revenues for the current quarter were $4.1 billion, below estimates, compared with $4.4 billion a year ago principally driven by losses related to investments associated with certain employee deferred compensation plans.
• Investment Management reported pre-tax income from continuing operations of $74 million compared with $80 million a year ago. Net revenues of $684 million increased from $637 million a year ago. Total AUM or supervision at Dec 31, 2018 were $463 billion compared with $482 billion a year ago.
• At Dec 31, 2018, book value and tangible book value per common share were $42.20 and $36.99, respectively, based on ~1.7 billion shares outstanding.