Morgan Stanley On Wednesday, it beat analysts' estimates for third-quarter earnings as each of its three major divisions generated more revenue than expected.
Here is what the company said:
Earnings: $1.88 per share vs. $1.58 LSEG estimate Revenue: $15.38 billion vs. $14.41 billion estimate
The bank said profits rose 32% to $3.2 billion, or $1.88 per share, and revenues jumped 16% to $15.38 billion.
Morgan Stanley had several tailwinds in its favor, starting with buoyant markets that helped its massive wealth management business, a rebound in investment banking after a dismal 2023, and strong trading activity. The Federal Reserve began cutting interest rates this quarter, which should encourage more financing and merger activity that benefits Wall Street firms.
“The firm reported a strong third quarter in a constructive environment across our global footprint,” Ted Beck, CEO of Morgan Stanley, said in the statement.
The bank's shares rose 7.5% in early trading.
The bank's wealth management division saw revenue jump 14% from a year earlier to $7.27 billion, beating StreetAccount estimates of about $400 million.
Equity trading revenue rose 21% to $3.05 billion, compared to estimates of $2.77 billion, while fixed income revenue rose 3% to $2 billion, also above estimates of $1.85 billion.
Investment banking revenues rose 56% year over year to $1.46 billion, beating estimates of $1.36 billion.
Investment Management, the company's smallest division, also beat expectations, reporting a 9% increase in revenue to $1.46 billion, slightly above estimates of $1.42 billion.
Morgan Stanley's rivals on Wall Street also posted better-than-expected revenue on Wall Street. JPMorgan Chase, Goldman Sachs and Citigroup Estimates were topped by strong revenues from commercial and investment banking.
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