Commanding a hefty market capitalization of roughly $253.7 billion, Morgan Stanley (MS) stands among the world’s major financial institutions. Headquartered in New York, the firm operates in 42 countries and offers services spanning investment banking, securities, wealth management, and investment management to clients ranging from governments and corporations to institutions and individuals. The leading investment bank is all set to report its fiscal 2025 third-quarter earnings before the market opens on Wednesday, October 15.
Analysts are looking for Morgan Stanley to post earnings of $2.03 per share in the upcoming report, an 8% increase from the $1.88 per share it earned in the same quarter last year. The bank has built a reputation for beating expectations, having outpaced Wall Street’s profit estimates in each of the past four quarters.
Most recently, it delivered EPS of $2.13, which came in 10.4% above consensus, underscoring the consistency of its bottom-line strength. Looking ahead, bottom-line growth is expected to remain steady. For fiscal 2025, earnings are projected to rise 11.5% to $8.86 per share, up from $7.95 reported in fiscal 2024, followed by another 8.1% gain in fiscal 2026, lifting EPS to $9.58.
Shares of the investment firm have performed well on Wall Street, soaring roughly 55.3% over the past year. By comparison, the broader S&P 500 Index ($SPX) delivered a 15.4% return during the same period, while the Financial Select Sector SPDR Fund (XLF) has gained 19.4%, highlighting the stock’s standout performance among both peers and benchmarks.
Morgan Stanley unveiled its second-quarter earnings on Jul. 16, surpassing Wall Street expectations on both the top and bottom lines, primarily driven by a surge in trading revenue. Net revenue jumped 11.8% year over year (YOY) to $16.8 billion, comfortably beating forecasts of $15.9 billion, while EPS climbed a notable 17% to $2.13, well above the $1.93 consensus. Despite the strong results, shares slipped nearly 1.3% as investment banking revenue took a hit, tempering investor enthusiasm.
Nevertheless, Wall Street remains cautiously bullish on Morgan Stanley, with an overall “Moderate Buy” rating. Among 25 analysts covering the name, six recommend a “Strong Buy,” three indicate a “Moderate Buy,” and the remaining 16 have issued a “Hold.” While shares are trading above the average analyst price target of $146.31, the Street’s highest target of $165 suggests the stock could still climb roughly 3.8% from current levels, leaving some room for upside.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com