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Earnings Reports: Morgan Stanley Gains, Novartis Soars

Pharmaceutical giant Novartis AG (NVS) posted stellar Q2 2019 earnings, even as Morgan Stanley missed earnings estimates and slid badly premarket.

Earnings Reports

Novartis (NVS) reported earnings of $1.34 per share, as well as sales of $11.76 billion for Q2 2019, all on the back of increased sales of three of its drugs (Cosentyx, Entresto and Lutathera). These earnings figures were better than analysts’ forecasts of $1.20 earnings per share and sales of $11.74 billion. The stock of Novartis spiked on this news in premarket trading, hitting $94.28. Novartis has raised its full year projections as a result.

Morgan Stanley also reported better than expected earnings for the second quarter of 2019, posting earnings per share of $1.23 versus the consensus estimate of $1.14. Revenues also beat estimates, coming in at $10.24 billion on the back of strong income performance from the investment management and wealth management divisions of the bank.

According to Jonathan Pruzan who is Morgan Stanley’s Chief Financial Officer, the bank’s performance was boosted by rising stock markets and growth in assets under its management. However, the division which caters to the bank’s trading and investment banking operations took a hit, pooling in $2.13 billion in revenue as opposed to the $2.2billion that analysts had expected. Net interest income fell to $1billion, which also raises concerns as to the impact that the expected rate cuts by the US Federal Reserve will impact the performance of the bank.

Morgan Stanley’s earnings report rounds off the Q2 2019 earnings reports from the six biggest banks in the US, with the other 5 all posting better than expected earnings as they benefit from what has been a good investment environment in 2019.Don’t miss a beat! Follow us on Twitter.

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