Morgan Stanley is trading nearly 4% higher in pre-market after its earnings beat expectations.
The company reported core earnings per share of 46 cents, which easily bested consensus estimates of 34 cents a share. Investors are overlooking a revenue short-fall and a sizable trading loss from its Japanese joint venture.
During the height of the financial crisis, Morgan Stanley benefited from a timely investment from Mitsubishi UFJ. But the venture that formed after that deal reported an after-tax loss of $425 million, which was slightly higher than expected. The loss was offset by a tax-related gain.view original article