Morgan Stanley Beats Estimates With 42% Q1 Drop

No. 2 investment bank beats analysts, but earnings fall again
By Jim O'Neill,  Newser User
Posted Mar 19, 2008 7:53 AM CDT
A tour bus passes the Morgan Stanley building on Wednesday, Dec. 19, 2007 in New York.   (AP Photo/Mark Lennihan)
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(Newser) – A day after posting its biggest gain on Wall Street in more than a decade—shares rose 18% to $42.86—securities firm Morgan Stanley today reported a second straight quarterly loss, as first quarter earnings fell 42% to $1.55 billion, from $2.67 billion a year ago, reports Bloomberg. But Morgan joined Goldman Sachs and Lehman Brothers in beating analyst expectations, prompting a runup in early trading.

Analysts had projected Morgan to earn $1.01 per share, down from $2.51 a year earlier; earnings of $1.45 per share prompted CEO John Mack—who said the company's fourth quarter earnings were "embarrassing"—to declare himself  “satisfied with how Morgan Stanley navigated the ongoing market turbulence." Revenue was down 17% to $48.3 billion, and the bank said it took $2.3 billion in writedowns.