Morgan Stanley (MS) beats expectations with strong Q1 2024 earnings

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on Apr 16, 2024
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  • Morgan Stanley surpasses Q1 earnings expectations with $15.1B revenue and $2.02 EPS.
  • Institutional Securities, Wealth Management, Investment Management show robust growth.
  • Firm's resilience and adaptability position it for continued success in dynamic markets.

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Morgan Stanley (NYSE: MS) has once again demonstrated its resilience and strength in the financial markets with an impressive 2024 first-quarter earnings report.

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The renowned Wall Street firm reported net revenue of $15.1 billion, surpassing analysts’ expectations and marking a significant increase from $14.5 billion in the same period last year. The firm has seen its net revenue increase considerably from what it reported in its 2023 Q4 earnings report.

Morgan Stanely surpasses expectations across various metrics

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Morgan Stanley’s first-quarter earnings report for 2024 exceeded expectations across various metrics, showcasing the firm’s robust performance in a dynamic market environment.

With earnings per share (EPS) of $2.02, the company outperformed analyst estimates by $0.36.

Additionally, Morgan Stanley reported a revenue of $15.1 billion, surpassing expectations by $710 million, reflecting a 4.0% year-over-year increase.

Morgan Stanely’s Q1 solid performance

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The impressive financial performance was driven by strong contributions from each of Morgan Stanley’s business segments. Institutional Securities reported net revenues of $7.0 billion, reflecting a 3.8% increase from the previous year.

Investment Banking revenues saw a notable uptick of 16%, with Equity underwriting revenues experiencing significant growth due to higher revenues from IPOs and follow-on offerings.

Wealth Management also delivered stellar results, with net revenues totaling $6.9 billion, up 5% from the same period last year. The segment witnessed record asset management revenues driven by positive market conditions, along with substantial net new asset growth totaling $95 billion.

Investment Management, another key segment for Morgan Stanley, reported net revenues of $1.4 billion, representing a 7% increase from the previous year. The growth was primarily fueled by higher average assets under management (AUM), although performance-based income and other revenues saw a slight decline due to reductions in accrued carried interest.

Morgan Stanely shows continued growth

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Morgan Stanley’s strong first-quarter performance underscores its ability to navigate challenging market conditions while capitalizing on growth opportunities.

With a return on tangible common equity (ROTCE) of 19.7%, the firm continues to deliver value to shareholders while maintaining a prudent approach to risk management.

Looking ahead, as Morgan Stanley continues to adapt to evolving market dynamics, investors remain optimistic about the firm’s prospects for sustained growth and profitability.

With a solid foundation and a diversified business model, Morgan Stanley is well-positioned to capitalize on emerging opportunities in the financial services industry.

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