Morgan Stanley Stock Falls Despite Strong Q3 Earnings Results

Morgan Stanley stock is trending downwards in the pre-market session on Oct. 15 after its third-quarter earnings results.

Ambrish Shah - Author

Oct. 15 2020, Updated 10:44 a.m. ET

morgan stanley earnings call
Source: istock

On Thursday, Oct. 15, Morgan Stanley stock fell 1.4 percent in the pre-market session after the company released its third-quarter earnings results. Morgan Stanley's quarterly sales and earnings beat analysts’ average estimates.

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When did Morgan Stanley report its earnings?

Morgan Stanley reported its results for the third quarter of 2020 on Oct. 15 before the market opened. The company held its conference call on the same day at 8:30 a.m. ET. Investors and analysts can get access to the webcast and presentation material on the company’s website under the investor relations section.

morgan stanley earnings
Source: istock
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Data from Morgan Stanley’s earnings report

In the third quarter, Morgan Stanley reported an adjusted EPS of $1.59 compared to $1.21 in the third quarter of 2019. The adjusted EPS beat analysts’ average estimate of $1.28. Morgan Stanley generated sales of $11.7 billion in the third quarter, which was 16.2 percent higher than the third quarter of 2019. The company beat analysts’ average sales estimate of $10.6 billion.

Morgan Stanley’s Wealth management revenues surged 6.8 percent year-over-year to $4.7 billion, while its institutional securities revenues surged 22 percent to $6.1 billion. The company’s provision for bad loans was $111 million in the third quarter compared to $239 million in the second quarter.

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In the press release, Morgan Stanley CEO James P. Gorman said, “We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent, high returns. The completion of the E*TRADE acquisition, the subsequent ratings upgrade from Moody’s, and the recently announced acquisition of Eaton Vance significantly strengthen our Firm and position us well for future growth.”

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What is Morgan Stanley’s stock price today?

Morgan Stanley stock was down about 0.7 percent at $50.30 in the pre-market trading session on Oct. 15 as of 7:55 a.m. ET. The stock rose 0.4 percent on Oct. 14 and closed at $50.65 with a market capitalization of $88.6 billion.

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Morgan Stanley stock has risen by 3.4 percent in the last five days and 16.6 percent in the last year. The stock is trading 12 percent below its 52-week high of $57.57 and 86.2 percent above its 52-week low of $27.20.

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morgan stanley dividend yield
Source: istock

What is Morgan Stanley’s dividend yield?

As of Oct. 14, Morgan Stanley’s dividend yield was 2.76 percent. Currently, the company pays an annual dividend of $1.40 per share. Morgan Stanley’s most recent quarterly dividend payment was made to stockholders of record on Aug. 14.

Morgan Stanley’s stock forecast

Wall Street analysts' stock price forecast for Morgan Stanley is $59.63, which suggests a 17.7 percent upside. The highest target price of $78 indicates a 54 percent upside, while the lowest target price of $45 indicates an 11.2 percent downside. Among the 27 analysts covering Morgan Stanley, 17 have a buy rating, nine have a hold rating, and one has a sell rating.


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