MS Earnings Prediction
The chart below shows how MS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MS sees a -3.60% change in stock price 10 days leading up to the earnings, and a -0.51% change 10 days following the report. On the earnings day itself, the stock moves by +1.78%. This data can give you a slight idea of what to expect for the next quarter's release.
MS Key Earning Data
MS Earnings Analysis
Positive
Record Revenue Performance: Revenues for 2024 totaled $61.8 billion, with fourth quarter revenues reaching a record $16.2 billion, showcasing strong financial performance throughout the year.
Record Earnings per Share: Earnings per share (EPS) for the full year was $7.95, with fourth quarter EPS at $2.22, marking the highest earnings per share in over 15 years.
Wealth Management Revenue Record: Wealth Management achieved record revenues of $28.4 billion in 2024, with a pre-tax profit of $7.7 billion and a reported margin of 27.2%.
CET1 Capital Accretion: The firm accreted over $5.5 billion of common equity Tier 1 capital in 2024, ending the year with a CET1 ratio of 15.9%, reflecting strong financial strength and capital management.
Shareholder Capital Return: Morgan Stanley returned $3.3 billion to shareholders through share repurchases in 2024, demonstrating a commitment to returning capital while maintaining a robust capital position.
Negative
Operational Efficiency Decline: In 2024, Morgan Stanley reported a full-year efficiency ratio of 71.1%, indicating a decline in operational efficiency compared to previous years, which may hinder future profitability.
Real Estate Charges Impact: Real estate charges of $62 million in 2024 negatively impacted full-year EPS by $0.03, reflecting ongoing costs associated with consolidation efforts that may not yield immediate benefits.
Investment Banking Revenue Trends: Investment banking revenues for 2024 totaled $6.2 billion, which, despite growth, indicates a reliance on market conditions that could be volatile and unpredictable moving forward.
Net Charge-Offs Analysis: The firm experienced net charge-offs of $210 million for the year, with $62 million in the fourth quarter primarily related to commercial real estate loans, highlighting potential risks in the loan portfolio.
Wealth Management Growth Shortfall: Despite a strong year, the firm acknowledged that the growth in wealth management's net new assets of $252 billion represents only approximately 5% annual growth, falling short of the targeted growth rate.
MS FAQs
How does MS typically perform around its earnings report dates?
MS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -3.60% change leading up to the report and a -0.51% change in the 10 days following the release.
