Morgan Stanley Reports Loss Amidst Financial Crisis

Strategic Insights -

As the world continues to grapple with the financial crisis, Morgan Stanley (NYSE: MS) reported a second-quarter 2009 loss of $159 million, or $1.37 per diluted share, compared to income of $689 million in the same period last year. The loss was a stark contrast to the strong results from competitors like Goldman Sachs (NYSE: GS) and JP Morgan (NYSE: JPM), which have taken a more aggressive approach to regain market share. Meanwhile, biopharmaceutical company Human Genome Sciences, Inc. (Nasdaq: HGSI) announced a $151 million order for its anthrax treatment drug ABthrax, while GlaxoSmithKline Plc (NYSE: GSK) and Human Genome reported positive results for their lupus drug Benlysta.

Key Takeaways:

  • Morgan Stanley reported a second-quarter 2009 loss of $159 million, compared to income of $689 million in the same period last year.
  • The consensus estimate called for a loss of 49 cents per share, while competitors like Goldman Sachs and JP Morgan reported strong results.
  • Human Genome Sciences, Inc. (Nasdaq: HGSI) announced a $151 million order for 45,000 doses of its anthrax treatment drug ABthrax, with delivery to be made over a 36-month period.
  • The order comes on the heels of positive results for Human Genome's lupus drug Benlysta, which was announced in a phase III study (BLISS-52) in collaboration with GlaxoSmithKline Plc (NYSE: GSK).
  • The company expects to recognize $151 million in revenue from the completion of this order.

Statistics:

  • Morgan Stanley's second-quarter 2009 net revenues were $5.4 billion, compared to $6.1 billion in the same period last year ($6.1 billion vs. $5.4 billion, -17.4% decline).
  • Human Genome Sciences, Inc. (Nasdaq: HGSI) expects to receive approximately $151 million from the completion of the ABthrax order ($151 million in revenue).
  • The order for 45,000 doses of ABthrax is to be delivered over a 36-month period, with a total value of $151 million ($151 million / 3 years = $50.33 million per year).
  • The positive results for Benlysta were announced in a phase III study (BLISS-52), with another late-stage study (BLISS-76) expected to report results in November.

Sources:

  • [1] Morgan Stanley (NYSE: MS) reported second-quarter 2009 loss of $159 million this morning, or $1.37 per diluted share, compared with income of $689 million, or 61 cents, a year ago. (Source: Zacks.com)
  • [2] Human Genome Sciences, Inc. (Nasdaq: HGSI) announced today that it will be selling 45,000 doses of raxibacumab or ABthrax to the U.S. Government for the Strategic National Stockpile. (Source: Zacks.com)
  • [3] Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. (Source: Zacks.com)
  • [4] Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. (Source: Zacks.com)