Morgan Stanley (MS) Earnings Surprise Wall Street

Morgan Stanley's earnings fell by 17%, surprising Wall Street after the more positive earnings announcement from Lehman yesterday.

Morgan Stanley's earnings fell by 17%, surprising Wall Street after the more positive earnings announcement from Lehman yesterday.

Quarterly profit fell $1.54 billion or $1.44 a share, compared to $1.85 billion, or $1.75 a share in the year-ago period. Revenue rose 13% to $7.96 billion, from $7.06 billion. The increase of revenue was attributable to stronger investment bankins fees, which helped to cushion losses in other areas.

The company reported that loan markdowns in the second quarter cost $940 million.

Analysts polled by Thomson Financial had expected the firm to earn $1.54 a share in the quarter.

The stock opened down but is currently up by about 1 point, or a little over 1%.

Now, the question is, is the worst over or is it just beginning?

Sam Cass
Sam Cass: Sam Cass, MBA, JD, University of Texas at Austin. Always a fan of Leonardo Da Vinci.

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