Morgan Stanley: Post-Earnings Decline Fails to Deter Our Higher Price Target

Morgan Stanley Reports Strong Q4 Earnings, Beating Expectations

Morgan Stanley reported adjusted earnings-per-share (EPS) on Tuesday morning that exceeded expectations, signaling strong performance in the fourth quarter. The revenue for the three months ended Dec. 30 increased 1% year-over-year to $12.9 billion, surpassing the consensus estimate of $12.75 billion. Earnings-per-share fell 10% on an annual basis to $1.13, but still exceeded the expected $1.01 by a wide margin. Despite this positive report, Morgan Stanley’s new CEO, Ted Pick, expressed caution about the macroeconomic landscape, setting a tone of skepticism and leading to a tough session for the stock.