Morgan Stanley (MS) third quarter 2024 results

Morgan Stanley Wednesday beat analyst estimates for third-quarter earnings as each of its three main divisions generated more revenue than expected.

This is what the company reported:

• Earnings:$1.88 per share vs. LSEG estimate of $1.58
• Revenue: $15.38 billion vs. estimate of $14.41 billion

The bank said earnings rose 32% to $3.2 billion, or $1.88 per share, and revenue rose 16% to $15.38 billion.

Morgan Stanley had several tailwinds in its favor, starting with buoyant markets that helped its huge wealth management business, an investment banking rebound after a dismal 2023, and strong trading activity. The Federal Reserve began cutting rates in the quarter, which should encourage greater financing activity and mergers that capitalize on Wall Street companies.

“The firm reported a strong third quarter in a constructive environment across our global footprint,” Morgan Stanley CEO Ted Pick said in the statement.

The bank’s shares rose 7.5% in early trading.

The bank’s wealth management division posted revenue growth of 14% from a year earlier to $7.27 billion, beating StreetAccount’s estimate by nearly $400 million.

Equity trading revenue rose 21% to $3.05 billion, compared with the estimate of $2.77 billion, while fixed income revenue rose 3% to $2.0 billion, also above estimate of 1,850 million dollars.

Investment banking revenue rose 56% from a year earlier to $1.46 billion, beating the estimate of $1.36 billion.

Investment management, the company’s smallest division, also beat expectations, posting a 9% increase in revenue to $1.46 billion, modestly above the estimate of $1.42 billion.

Morgan Stanley’s rivals on Wall Street also posted better-than-expected earnings on Wall Street. JPMorgan Chase, Goldman Sachs and citi group beat estimates thanks to strong revenues from commercial and investment banking.

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