Morgan Stanley Profit Trounces Estimates

Morgan Stanley Dean Witter & Co. said its profit surged 86% in its fiscal fourth quarter to $1.63 billion, or $2.84 a share, trouncing Wall Street’s average forecast of $1.95 a share, as a boom in mergers and stock offerings propelled the securities firm’s investment banking business. Net revenue climbed 43% to $5.7 billion. Morgan Stanley also declared a 2-for-1 stock split, boosted its pre-split dividend 67% to 40 cents a share and said it would buy back an additional $1 billion in stock, depending on market conditions. Morgan Stanley’s stock rose $2.27 to close at $130.33 on the NYSE.