Here's What to Expect From Morgan Stanley's Next Earnings Report

Morgan Stanley (MS), headquartered in New York City, is a leading global financial services firm known for its expertise in investment banking, wealth management, and institutional securities. With a market cap of $202.5 billion, Morgan Stanley delivers innovative financial solutions designed to address clients’ dynamic needs worldwide. The company is set to release its Q4 earnings before the market opens on Thursday, Jan. 16.

Ahead of the event, analysts expect Morgan Stanley to report a profit of $1.58 per share, up 39.8% from $1.13 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

Its adjusted earnings of $1.88 per share for the last quarter surpassed the consensus estimate by 19.8%. Morgan Stanley's Q3 outperformance was driven by strong growth in investment banking, institutional securities, and asset management, fueled by higher client activity and favorable market dynamics.

For fiscal 2024, analysts expect Morgan Stanley to report EPS of $7.36, up 34.8% from $5.46 in fiscal 2023. Looking ahead, the company’s bottom line is projected to surge 7.6% year over year to $7.92 per share in fiscal 2025.

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Morgan Stanley's shares have climbed 34.8% over the past 52 weeks, surpassing the S&P 500 Index’s ($SPX) 23.3% gains and the Financial Select Sector SPDR Fund’s (XLF) 28.5% returns over the same period.

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Morgan Stanley has outperformed the broader index and its peers due to strong earnings growth, robust revenue performance, and effective execution across key business segments. On Oct. 16, Morgan Stanley's shares surged 6.5%, driven by strong Q3 2024 earnings. Revenue grew 15.9% year over year to $15.38 billion, with the firm achieving a ROTCE of 17.5% for the quarter.

Wall Street remains moderately optimistic about Morgan Stanley, with a consensus “Moderate Buy” rating overall. Of the 22 analysts covering the stock, six advise a “Strong Buy,” and 16 suggest a “Hold.”

The mean price target of $127.39 suggests a potential upside of 1.3% from current price levels.