Morgan Stanley Earnings Top Estimates – But Stock Falls 8%

Key Takeaways

• Morgan Stanley’s Q3 results came in above expectations
• Even so, profit was down 9% with poor results in the wealth management and investment banking division
• The market reaction was significant, with the stock falling 8% after the announcement

Morgan Stanley have delivered their Q3 results, and while earnings came in above analyst forecasts, the overall picture was enough to send their stock tumbling.

The fallout came mainly as a result of the unimpressive results in the bank’s wealth management and investment banking divisions, but even so the drastic movement of the stock price does appear to be somewhat of an overreaction.