/Morgan%20Stanley%20logo%20and%20money-by%20IgorGolovniov%20via%20Shutterstock.jpg)
New York-based Morgan Stanley (MS) provides various financial products and services to corporations, governments, financial institutions, and individuals, currently valued at a market cap of $161.9 billion. The investment banking giant is expected to announce its fiscal Q2 earnings for 2024 before the market opens on Tuesday, July 16.
Ahead of the event, analysts expect Morgan Stanley to report a profit of $1.63 per share, up 31.5% from $1.24 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimate over the past four quarters.
Its EPS for the last reported quarter increased 18.8% year over year to $2.02 per share, beating the Wall Street estimates by 19.5%. Morgan Stanley reported a jump in revenue from all three segments, which resulted in increased revenues and profits for Q1.
Looking ahead to fiscal 2024, analysts expect Morgan Stanley to report an EPS of $6.80, up 24.5% from $5.46 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 10.6% annually to $7.52.
MS stock has gained 7.7% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 15.6% gains and S&P 500 Financials Sector SPDR’s (XLF) 10.9% returns over the same time frame.
Despite lagging behind the broader market, Morgan Stanley has recently shown strong performance. Following its Q1 earnings release on April 16, the stock edged up 2.5% and maintained positive momentum for seven consecutive trading sessions. Robust growth in investment banking, trading, and asset management contributed to a 4.3% rise in total net revenues. Effective cost management led to double-digit bottom-line growth for the company.
Moreover, on June 28, Morgan Stanley raised its dividend to $0.925 per share from $0.85 per share after clearing the U.S. Federal Reserve’s annual stress test – a yearly gauge of financial resilience under extreme economic conditions. MS stock saw gains, reflecting heightened investor enthusiasm.
The consensus opinion on Morgan Stanley stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 23 analysts covering the stock, nine recommend a “Strong Buy” rating, and the remaining 14 suggest a “Hold” rating.
Although Morgan Stanley is currently trading above its average price target of $98.20, the Street-high target price of $118 suggests a potential upside of 18.4% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
