Morgan Stanley Wednesday exceeded analyst expectations for third-quarter earnings as each of its three major divisions generated more revenue than expected.
This is what the company reported:
- Income:$1.88 per share vs. $1.58 LSEG estimate
- Gain: $15.38 billion vs. $14.41 billion estimate
The couch 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 winds in its favor, starting with booming markets that benefited its massive asset management business, an investment banking recovery after a dismal 2023, and strong trading activity. The Federal Reserve began cutting interest rates this quarter, which should spur more financing and merger activity that will benefit Wall Street firms.
“The company reported a strong third quarter in a constructive environment for our global footprint,” Morgan Stanley CEO Ted Pick said in the press release.
The bank’s shares rose 3.6% in premarket trading.
The bank’s asset management division saw revenue rise 14% from a year earlier to $7.27 billion, beating StreetAccount’s estimate by nearly $400 million.
Equities trading revenue rose 21% to $3.05 billion, compared to the $2.77 billion estimate, while fixed income revenue was 3% higher to $2 billion, also higher than the $1.85 billion estimate.
Investment banking revenue rose 56% from a year earlier to $1.46 billion, ahead of the $1.36 billion estimate.
Investment management, the company’s smallest division, also exceeded expectations, posting a 9% increase in revenue to $1.46 billion, modestly ahead of the $1.42 billion estimate.
Morgan Stanley’s Wall Street rivals also posted better-than-expected revenue on Wall Street. JPMorgan Chase, Goldman Sachs And Citi Group exceeded expectations for strong commercial and investment banking revenues.
This story is developing. Check back later for updates.