Thursday's Earnings Roundup: BAC, MS, DD, TRV, DHR, VZ, EMC, NOK
Bank of America
The bank reported first-quarter earnings of 3 cents a share on $22.5 billion in revenue. On a valuation-adjusted basis, earnings came in at 28 cents a share, topping analysts' estimates of 12 cents a share on $22.51 billion in revenue.
"The narrowing of our credit spreads reflects the significant progress we've made to strengthen the balance sheet," Chief Financial Officer Bruce Thompson said in a statement. "During the quarter, we increased our Tier 1 common equity ratio by 92 basis points from the prior quarter, improved our liquidity to record levels and continued to reduce risk-weighted assets. While the improvement in our credit spreads results in a negative adjustment to earnings this quarter, it should not overshadow the positive momentum that we are seeing in our businesses."
Shares of Bank of America rose 2.8% in premarket trading Thursday to $9.17. TheStreet Ratings gives Bank of America a C- grade and hold rating.
The firm's first-quarter earnings of 71 cents a share on $8.9 billion in revenue beat analysts' estimates of 42 cents a share on revenue of $7.31 billion.
"This quarter is further evidence that Morgan Stanley has rebounded from the financial crisis of 2008 and is in a significantly stronger position," CEO James Gorman said in a statement. He added, "Of particular note was the strength in sales and trading, which showed broad-based gains across products and regions. In addition, our global alliance with MUFG continues to strengthen, with improving operating performance in our securities joint venture in Japan and continued loan growth in the U.S. On the near horizon, we are intensely focused on completing the transition of Morgan Stanley Smith Barney to the new, state-of-the-art technology platform this summer, as well as maintaining a conservative capital and liquidity profile as we navigate global markets."
Trading and sales net revenue for the quarter was $2.2 billion; the global wealth management division had $3.4 billion in net revenue.
Shares of Morgan Stanley rose 5.15% in premarket trading Thursday to $18.57. TheStreet Ratings gives Morgan Stanley a C- grade and hold rating.
The chemical company reported first-quarter earnings of $1.49 billion, or $1.57 a share, up from year-earlier earnings of $1.43 billion, or $1.52. Analysts, on average, were expecting earnings of $1.55 a share.