Morgan Stanley Q4 Earnings Preview: Wall Street Sees Growth, Retail Stays Bullish
Analysts expect Morgan Stanley to report fourth-quarter earnings per share of $1.70 on revenue of $15.03 billion.
FollowMorgan Stanley’s shares rose 1.2% in Tuesday’s pre-market session, tracking the broader market, just days ahead of its fourth-quarter earnings report.
Wall Street expects the lender to report quarterly earnings per share of $1.70 on revenue of $15.03 billion. Morgan Stanley has topped market expectations for three prior quarters.
According to TheFly, BofA Global Research analysts have said that strong third-quarter results have brought back investor confidence in the bank’s franchise potential, and the stock momentum could continue due to positive EPS revisions and better capital flexibility.
The Trump administration is expected to be more lenient regarding the amount of capital banks must set aside for potential losses.
Barclays analyst Jason Goldberg was also optimistic about large-cap banks, according to TheFly. Barclays expects price-to-earnings multiples to grow in a "sound" economic environment, regulatory reduction, higher returns, and mergers and acquisitions.
Evercore analysts had earlier predicted deal activity would rise in 2025 after cooling down in December.
Still, dealmaking in the United States was up 13% in 2024, according to Dealogic data. Morgan Stanley’s third-quarter investment banking revenue had jumped 56% to $1.46 billion.
Retail sentiment on Stocktwits remained in the ‘bullish’ (71/100) zone, albeit with a higher score, while chatter around the stock remained ‘high.’
MS’s Sentiment Meter and Message Volume as of 07:51 a.m. ET on Jan. 14, 2025 | Source: Stocktwits
One user commented that the 2020s had been a good decade for the lender.
Morgan Stanley is scheduled to report its earnings before the bell on Thursday.
The stock is up 44.2% over the past year.
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