Morgan Stanley reports strong Q2 results but misses in Wealth Management; stock outlook positive.

From CNBC: 2024-07-16 13:57:59

Morgan Stanley reported second-quarter results exceeding expectations, with revenue up 11% to $15.02 billion and EPS jumping 47% to $1.82. The Institutional Securities segment performed well, but Wealth Management and Investment Management fell short. Wealth Management’s weakness caused an initial drop in shares, but investors remain optimistic about the investment banking rebound. Forecasting an improvement in Wealth Management beyond the current quarter and potential deregulation, Morgan Stanley’s stock reached an all-time high. Segment sales showed strong performance in key subsegments, including a surge in investment banking revenue and an 18% rise in equity trading revenue. Wealth Management revenue disappointed, but asset management revenue reached a record high. Transactional revenue fell, with net interest income declining. Investment Management segment surpassed expectations, with total assets increasing. Tangible book value per share is $42.30, and Morgan Stanley stock is expected to continue growing as outlook for 2025 remains positive.



Read more at CNBC:: We’re hiking our price target on Morgan Stanley despite a miss in a key business