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Morgan Stanley beats estimates for Q3 earnings

Miguel A. Rodriguez
Miguel A. Rodriguez
16 October 2020
Stringer-than-expected earnings for Morgan Stanley

Morgan Stanley followed its banking peers and released its Q3 earnings report. The figures took Wall Street by surprise.

The bank’s profit jumped 25% from last year’s figures to $2.72 billion, or $1.66 per share. The market was expecting $1.28 a share.

Morgan Stanley’s revenue came in one billion above the estimates at $11.7 billion. Compared to last year's figures, the actual numbers are 16% higher. The wealth and investment management divisions each produced $200 more million than forecasted.

Since the beginning of the year, the bank has made several acquisitions that expanded the investment management segment. In February, the discount brokerage E-Trade was purchased for $13 billion. Last week, another American investment management company - Eaton Vance – was bought for $7 billion.

"We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent high returns," stated CEO James Gorman.

Following the announcement, Morgan Stanley's stock price went up 1.3%.

Read here about how the other American banks have performed in Q3!


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.