Morgan Stanley reports strong earnings with revenue and profits exceeding expectations, leading to stock surge.

From Nasdaq.: 2024-10-21 08:39:00

Several big banks reported earnings during the week of October 14, 2024, with Morgan Stanley (NYSE: MS) revealing better-than-expected results. Shares jumped to new highs, ending the week up 9% and 61.7% over the past year.

Analysts predict a potential 11.2% decline in MS stock, despite the recent positive trend.

Morgan Stanley’s third-quarter earnings surged, with revenue exceeding expectations at $15.4 billion and profits reaching $3.2 billion, up by 31% from the prior year. The firm’s provision for credit losses was reduced to $79 million, a standout achievement in the banking industry.

Wealth management and investment banking divisions thrived, posting record revenues and significant growth.

A capital-markets recovery has reignited investment banking, but caution is advised due to uncertainty around interest rates and potential impacts from the November election.

Morgan Stanley’s current peak may signal further growth, driven by strong business segments. However, political and economic uncertainty could lead to a different outlook for the financial services sector.



Read more at Nasdaq.:: Morgan Stanley Touches New High – Can it Mover Higher?