Have you been eager to see how Morgan Stanley (MS – Analyst Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based leading financial services holding company’s earnings release this morning:

An Earnings Beat

Morgan Stanley came out with earnings per share from continuing operations of 39 cents. Excluding DVA, adjusted earnings stood at 43 cents per share, which surpassed the Zacks Consensus Estimate of 35 cents.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Morgan Stanley depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 23.9% lower over the last 7 days.

However, Morgan Stanley has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in two of the prior three quarters. Nonetheless, the company missed the Zacks Consensus Estimate by an average of 12.02% in the trailing four quarters.

Revenue Came In Higher Than Expected  

Morgan Stanley posted net revenues (excluding DVA adjustments) of $7.86 billion, which compared favorably with the year-ago number of $7.54 billion. The Zacks Consensus Estimate was $7.32 billion.

Key Statistics:

James P. Gorman, Chairman and Chief Executive Officer, said, “A strong overall performance in the first half of the year was impacted by difficult market conditions in the second half that dampened trading activity.In the fourth quarter we took action to meaningfully restructure our Fixed Income business on a capital and expense basis.We enter 2016 with a continued focus on managing expenses across the Firm and driving up returns for our shareholders.”

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for Morgan Stanley. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

How the Market Reacted So Far

Following the earnings release, Morgan Stanley shares were up nearly 4% in the pre-trading session. This is contradictory to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.