Morgan Stanley expected to have strong Q4 earnings due to increased trading and IB activities

From Nasdaq: 2025-01-10 06:00:00

In the fourth quarter of 2024, Morgan Stanley’s trading business is expected to have performed well due to increased client activity and market volatility. Strong growth in trading revenues is anticipated, with estimates for equity and fixed-income trading revenues at $2.38 billion and $1.78 billion, respectively.

Global mergers and acquisitions showed improvement in Q4 2024, benefiting Morgan Stanley’s investment banking income. The Zacks Consensus Estimate for advisory fees is $593.2 million, while underwriting fees are expected to rise significantly. Overall IB income is projected to increase by 22.8% year-over-year to $1.62 billion.

Morgan Stanley’s net interest income is forecasted to grow by 10.1% year-over-year, supported by Federal Reserve rate cuts. Despite cost reductions, expenses are expected to rise due to investments in franchises and increased revenue. The Zacks Consensus Estimate for total non-interest expenses is $11.04 billion, a 2.2% increase.

According to our model, Morgan Stanley is likely to beat earnings estimates with an Earnings ESP of +1.79% and a Zacks Rank of 3. Earnings estimates for the company have been revised upwards, with an expected EPS of $1.60 and sales of $14.71 billion. Peers like Goldman Sachs and JPMorgan also show potential for earnings beats in their upcoming releases.



Read more at Nasdaq: Surge in IB Activities & Solid Trading to Support MS’ Q4 Earnings