Earnings Alerts

Morgan Stanley (MS) Earnings: 4Q Net Revenue Surpasses Estimates with Strong Wealth Management Performance

By January 16, 2025 No Comments
  • Morgan Stanley‘s net revenue for Q4 was $16.2 billion, surpassing the estimate of $15.06 billion.
  • Wealth management net revenue came in at $7.5 billion, exceeding the expected $7.32 billion.
  • Equities sales & trading revenue reached $3.33 billion, outdoing the $2.63 billion estimate.
  • Institutional Investment Banking revenue fell slightly short at $1.64 billion, against an expected $1.71 billion.
  • Advisory revenue stood at $779 million, higher than the $727.8 million forecast.
  • Equity underwriting revenue was $455 million, beating the $445.3 million estimate.
  • Fixed Income Underwriting revenue was $407 million, below the $529 million prediction.
  • Earnings per share (EPS) were reported at 85 cents.
  • Non-interest expenses amounted to $11.20 billion, slightly lower than the estimated $11.26 billion.
  • Compensation expenses were $5.95 billion, below the $6.64 billion estimate.
  • Non-compensation expenses reached $4.85 billion, higher than the $4.62 billion estimate.
  • The book value per share is $58.98, with a tangible book value of $44.57.
  • Return on equity (ROE) was 15.2%, above the estimated 11.6%.
  • Return on tangible equity was impressive at 20.2%, surpassing the 15.5% estimate.
  • Provision for credit losses was very low at $3 million, compared to an expected $73.9 million.
  • The effective tax rate was 24.1%, slightly higher than the 23.3% estimation.
  • Assets under management amounted to $1.67 trillion, exceeding the $1.63 trillion forecast.
  • Fee-based asset flows were $35.2 billion, above the two projections of $32.5 billion.
  • The expense efficiency ratio was 69%, better than the 74.4% estimate.

A look at Morgan Stanley Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth3
Resilience2
Momentum5
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Morgan Stanley appears to have a positive long-term outlook. With a high Momentum score of 5, the company seems to have strong upward movement potential. Additionally, its Dividend score of 4 indicates a good track record of consistent dividend payouts, appealing to income-focused investors. While the Value and Growth scores are moderate at 3, suggesting steady performance in these areas, the Resilience score of 2 may raise some concerns about the company’s ability to weather market uncertainties.

Morgan Stanley, a bank holding company known for providing diversified financial services globally, operates a significant global securities business catering to both individual and institutional investors as well as investment banking clients. The company’s global asset management business further adds to its diversified revenue streams and market presence, showcasing a well-rounded approach to financial services.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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