Why Morgan Stanley Shares Are Surging Today

Zinger Key Points
  • Morgan Stanley's Q1 FY24 revenue of $15.1 billion exceeded expectations, driven by strong performance across divisions.
  • Net profit increased to $3.4 billion, with EPS of $2.02 beating consensus estimates.

Morgan Stanley MS shares are trading higher after the company reported better-than-expected first-quarter FY24 financial results.

The company reported revenues of $15.1 billion, beating the consensus of $14.34 billion.

The Wealth Management division generated $6.9 billion in revenue, vs. $6.6 billion a year ago.

RelatedRegulators Probe Morgan Stanley’s Wealth-Management Division: Report

Investment Banking produced $1.45 billion in revenue, up 16% Y/Y, led by equity underwriting revenues (reflecting higher revenues from IPOs and follow-ons) and fixed income underwriting revenues on higher bond issuances.

Investment Management net revenues were $1.4 billion, vs. $1.3 billion the prior year and AUM of $1.51 trillion. Fixed Income net revenues increased to $2.49 billion from $2.58 billion a year ago.

Also ReadMorgan Stanley’s Compliance Efforts Under Spotlight As Federal Regulators Investigate Handling of Wealth Management Clients

Net profit came in at $3.4 billion, compared to $3.0 billion a year ago. Provision of credit losses stood at $(6) million vs. $234 million a year ago quarter. EPS stood at $2.02, beating the consensus of $1.68.

Dividend: The Board of Directors declared a quarterly dividend per share of $0.85, payable on May 15, 2024, to common shareholders of record on April 30, 2024.

The company repurchased $1.0 billion of its outstanding common stock during the quarter. 

Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and Invesco KBW Bank ETF KBWB.

Also ReadMorgan Stanley Identifies Top ‘Alpha’ Stocks In APAC, One With Potential 28% Upside

Price Action: MS shares traded higher by 3.44% at $89.98 on the last check Tuesday.

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