(By Balachander) Morgan Stanley (NYSE:MS) shares fell 4.99 percent in premarket trading on Thursday, after the company posted weaker-than-forecast quarterly revenue amid a slump in investment banking revenue.
The New York-based financial services giant earned 29 cents a share for the second quarter, compared with a loss of 38 cents per share in the same period of last year. Analysts, on average, expected MS to earn 43 cents a share.
Revenue plunged 24 percent to $6.95 billion as revenue at the company's Institutional Securities and Asset Management segments dropped 37 percent and 28 percent, respectively. Investment banking revenue tumbled 35 percent to $1.1 billion.
Market expectations called in for a 17.1 percent drop in revenue.
Results for the quarter ended June 30 included positive revenue of $350 million, related to the movement in Morgan Stanley's credit spreads and other credit factors.
Pre-tax profit margin shrank to 14 percent from 21 percent.
MS shares, which have been trading between $11.58 and $24.46 over the past 52 weeks, closed Wednesday's regular trading at $13.99.