Ted Pick, CEO of Morgan Stanley, speaks on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland, January 23, 2025.
Gerry Miller | CNBC
Morgan Stanley reported third-quarter results that beat expectations for blockbuster results in its stock trading franchise.
Here’s what the company reported:
- Earnings per share: LSEG estimate of $3.03 vs. $2.91
- Income: $20.34 billion versus estimate of $19.95 billion
The company said its profit rose 6.5% to $4.91 billion, or $3.03 per share. Revenue climbed 12% to $20.34 billion.
The company’s equity trading division, long a flagship business for Morgan Stanley, posted a 41% increase in revenue to $5.8 billion, beating StreetAccount’s estimate of about $909 million.
Morgan Stanley cited broad-based strength across its equity products and regions, but cited Asia as a source of particular strength in the quarter. Gains in this sector helped offset disappointments elsewhere.
Fixed-income trading revenue fell 7% to $2.01 billion, driven by declines in credit and commodities, about $260 million less than expected.
Investment banking revenue edged up 2% to $2.16 billion, about $110 million below expectations. The bank cited an increase in advisory revenue related to more completed mergers, but a decline in equity underwriting due to fewer IPOs and a decline in fixed-income underwriting.
Shares were down less than 1% in premarket trading.
Analysts will want to know what CEO Ted Pick has to say about the outlook for mergers and IPOs for the rest of the year, amid churn driven by rising interest rates.
This story is developing. Please check again for updates.
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