Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades [1] Company Overview: Morgan Stanley (MS) - Morgan Stanley currently holds a Momentum Style Score of A, indicating strong momentum characteristics [1] - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance in the market [2] Performance Metrics - Over the past week, Morgan Stanley's shares have increased by 9.6%, outperforming the Zacks Financial - Investment Bank industry, which rose by 2.25% [3] - In the last month, Morgan Stanley's shares have appreciated by 15.34%, compared to the industry's 6.3% [3] - Over the past quarter, shares have risen by 14.03%, and in the last year, they have gained 65.34%, while the S&P 500 has only increased by 5.5% and 40.28%, respectively [3] Trading Volume - The average 20-day trading volume for Morgan Stanley is 6,127,828 shares, which serves as a bullish indicator when combined with rising stock prices [3] Earnings Outlook - In the last two months, 7 earnings estimates for Morgan Stanley have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $7.03 to $7.29 [4] - For the next fiscal year, there have also been 7 upward revisions and 1 downward revision in earnings estimates [4] Conclusion - Given the strong performance metrics and positive earnings outlook, Morgan Stanley is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [4]

Morgan Stanley is the last of the major banks to report third-quarter earnings and produced results that exceeded analysts' expectations, just like all the others. (The reports on the other five "big" banks can be found in thisJohn M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assista ...

Morgan Stanley (NYSE:MS) Q3 2024 Earnings Conference Call October 16, 2024 8:30 AM ET Company Participants Ted Pick - Chief Executive Officer Sharon Yeshaya - Chief Financial Officer Conference Call Participants Steven Chubak - Wolfe Research Ebrahim Poonawala - Bank of America Glenn Schorr - Evercore Devin Ryan - Citizens JMP Dan Fannon - Jefferies Brennan Hawken - UBS Christian Bolu - Autonomous Gerard Cassidy - RBC Mike Mayo - Wells Fargo Saul Martinez - HSBC Operator Good morning. Welcome to Morgan Stan ...

For the quarter ended September 2024, Morgan Stanley (MS) reported revenue of $15.38 billion, up 15.9% over the same period last year. EPS came in at $1.88, compared to $1.38 in the year-ago quarter.The reported revenue represents a surprise of +7.77% over the Zacks Consensus Estimate of $14.27 billion. With the consensus EPS estimate being $1.57, the EPS surprise was +19.75%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Group 1: Earnings Performance - Morgan Stanley reported quarterly earnings of $1.88 per share, exceeding the Zacks Consensus Estimate of $1.57 per share, and up from $1.38 per share a year ago, representing an earnings surprise of 19.75% [1] - The company posted revenues of $15.38 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.77%, compared to $13.27 billion in the same quarter last year [1] - Over the last four quarters, Morgan Stanley has consistently surpassed consensus EPS and revenue estimates [1] Group 2: Stock Performance and Outlook - Morgan Stanley shares have increased approximately 20.3% since the beginning of the year, while the S&P 500 has gained 21.9% [2] - The current consensus EPS estimate for the upcoming quarter is $1.49 on revenues of $14.36 billion, and for the current fiscal year, it is $6.94 on revenues of $58.78 billion [4] - The estimate revisions trend for Morgan Stanley is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Group 3: Industry Context - The Financial - Investment Bank industry, to which Morgan Stanley belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable industry outlook [5] - Another company in the same industry, Raymond James Financial, Inc., is expected to report quarterly earnings of $2.46 per share, reflecting a year-over-year increase of 15.5% [5][6]

Consolidated Financials [Consolidated Financial Summary](index=2&type=section&id=Consolidated%20Financial%20Summary) Morgan Stanley reported strong Q3 2024 performance with net revenues of $15.4 billion and net income of $3.2 billion, up 16% and 32% year-over-year respectively Q3 2024 Consolidated Financial Performance ($ in millions) | Financial Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YoY Change | Nine Months 2024 ($ millions) | Nine Months 2023 ($ millions) | YTD Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | **$15,383** | **$13,273** | **16%** | **$45,538** | **$41,247** | **10%** | | Institutional Securities | $6,815 | $5,669 | 20% | $20,813 | $18,120 | 15% | | Wealth Management | $7,270 | $6,404 | 14% | $20,942 | $19,623 | 7% | | Investment Management | $1,455 | $1,336 | 9% | $4,218 | $3,906 | 8% | | **Provision for credit losses** | **$79** | **$134** | **(41%)** | **$149** | **$529** | **(72%)** | | **Non-interest expenses** | **$11,083** | **$9,994** | **11%** | **$32,699** | **$31,001** | **5%** | | **Income before taxes** | **$4,221** | **$3,145** | **34%** | **$12,690** | **$9,717** | **31%** | | **Net Income** | **$3,188** | **$2,408** | **32%** | **$9,676** | **$7,570** | **28%** | [Consolidated Financial Metrics, Ratios and Statistical Data](index=3&type=section&id=Consolidated%20Financial%20Metrics%2C%20Ratios%20and%20Statistical%20Data) The firm's profitability metrics significantly improved in Q3 2024, with diluted EPS up 36% to $1.88 and ROE rising to 13.1% Key Financial Metrics & Ratios | Metric | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Earnings per diluted share** | **$1.88** | **$1.38** | **36%** | | Return on average common equity | 13.1% | 10.0% | +310 bps | | Return on avg. tangible common equity | 17.5% | 13.5% | +400 bps | | Book value per common share | $58.25 | $55.08 | +5.8% | | Tangible book value per common share | $43.76 | $40.53 | +8.0% | | Pre-tax margin | 27% | 24% | +300 bps | | Firm expense efficiency ratio | 72% | 75% | -300 bps | [Consolidated and U.S. Bank Supplemental Financial Information](index=4&type=section&id=Consolidated%20and%20U.S.%20Bank%20Supplemental%20Financial%20Information) As of September 30, 2024, total assets grew 8% year-over-year to $1.26 trillion, supported by increases in loans and deposits Consolidated Balance Sheet Highlights ($ in billions) | Item | Sep 30, 2024 ($ billions) | Sep 30, 2023 ($ billions) | YoY Change | | :--- | :--- | :--- | :--- | | Total assets | $1,258.0 | $1,169.0 | 8% | | Loans | $239.8 | $225.0 | 7% | | Deposits | $363.7 | $345.5 | 5% | | Long-term debt outstanding | $291.2 | $242.8 | 20% | | Common equity | $93.9 | $90.5 | 4% | | Tangible common equity | $70.5 | $66.6 | 6% | [Consolidated Average Common Equity and Regulatory Capital Information](index=5&type=section&id=Consolidated%20Average%20Common%20Equity%20and%20Regulatory%20Capital%20Information) The firm maintained robust regulatory capital ratios in Q3 2024, with a Standardized Approach CET1 ratio of 15.1% and stable average common equity allocation Regulatory Capital Ratios (Standardized Approach) | Ratio | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 15.1% | 15.6% | | Tier 1 capital ratio | 17.1% | 17.6% | Average Common Equity by Segment ($ in billions) | Segment | Q3 2024 ($ billions) | Q3 2023 ($ billions) | | :--- | :--- | :--- | | Institutional Securities | $45.0 | $45.6 | | Wealth Management | $29.1 | $28.8 | | Investment Management | $10.8 | $10.4 | | **Firm Total** | **$92.7** | **$90.8** | Business Segment Performance [Institutional Securities](index=6&type=section&id=Institutional%20Securities) The Institutional Securities segment delivered strong Q3 2024 results with net revenues up 20% to $6.8 billion, driven by a 56% rebound in Investment Banking Institutional Securities Performance ($ in millions) | Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | **$6,815** | **$5,669** | **20%** | | Investment Banking | $1,463 | $938 | 56% | | Equity | $3,045 | $2,507 | 21% | | Fixed Income | $2,003 | $1,947 | 3% | | **Income before taxes** | **$1,911** | **$1,199** | **59%** | | **Net Income** | **$1,436** | **$912** | **57%** | [Wealth Management](index=7&type=section&id=Wealth%20Management) Wealth Management achieved record net revenues of $7.3 billion in Q3 2024, up 14% year-over-year, with total client assets growing 25% to nearly $6.0 trillion Wealth Management Performance ($ in millions) | Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | **$7,270** | **$6,404** | **14%** | | Asset management | $4,266 | $3,629 | 18% | | Transactional | $1,076 | $678 | 59% | | Net interest income | $1,774 | $1,952 | (9%) | | **Income before taxes** | **$2,060** | **$1,709** | **21%** | | **Net Income** | **$1,568** | **$1,320** | **19%** | Wealth Management Key Metrics ($ in billions) | Metric | Sep 30, 2024 ($ billions) | Sep 30, 2023 ($ billions) | YoY Change | | :--- | :--- | :--- | :--- | | Total client assets | $5,974 | $4,798 | 25% | | Net new assets (Q3) | $63.9 | $35.7 | 79% | | Deposits | $358 | $340 | 5% | [Investment Management](index=9&type=section&id=Investment%20Management) Investment Management reported Q3 2024 net revenues of $1.5 billion, up 9%, with total AUM growing 15% to $1.6 trillion due to strong net flows Investment Management Performance ($ in millions) | Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | **$1,455** | **$1,336** | **9%** | | Asset management fees | $1,384 | $1,312 | 5% | | Performance-based income | $71 | $24 | 196% | | **Income before taxes** | **$260** | **$241** | **8%** | | **Net Income** | **$192** | **$179** | **7%** | AUM and Net Flows ($ in billions) | Metric | Sep 30, 2024 ($ billions) | Sep 30, 2023 ($ billions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total AUM** | **$1,598** | **$1,388** | **15%** | | Long-Term AUM | $1,095 | $907 | 21% | | Liquidity & Overlay | $503 | $481 | 5% | | **Total Net Flows (Q3)** | **$16.6** | **($1.1)** | **N/A** | Credit and Lending [Consolidated Loans and Lending Commitments](index=11&type=section&id=Consolidated%20Loans%20and%20Lending%20Commitments) Total consolidated loans and lending commitments increased 10% year-over-year to $409.6 billion, with growth across both Institutional Securities and Wealth Management Loans and Lending Commitments by Segment ($ in billions) | Segment | Sep 30, 2024 ($ billions) | Sep 30, 2023 ($ billions) | YoY Change | | :--- | :--- | :--- | :--- | | **Institutional Securities** | **$235.9** | **$207.3** | **14%** | | Total Loans | $84.0 | $78.6 | 7% | | Lending Commitments | $151.9 | $128.7 | 18% | | **Wealth Management** | **$173.7** | **$165.0** | **5%** | | Total Loans | $155.3 | $145.9 | 6% | | Lending Commitments | $18.4 | $19.1 | (4%) | | **Consolidated Total** | **$409.6** | **$372.3** | **10%** | [Consolidated Loans and Lending Commitments Allowance for Credit Losses](index=12&type=section&id=Consolidated%20Loans%20and%20Lending%20Commitments%20Allowance%20for%20Credit%20Losses) The total provision for credit losses significantly decreased in Q3 2024 to $79 million, with the total ACL for loans and commitments at $1.72 billion Allowance for Credit Losses (ACL) as of Sep 30, 2024 ($ in millions) | Category | Loans & Commitments (Gross) ($ millions) | ACL ($ millions) | ACL % | Q3 Provision ($ millions) | | :--- | :--- | :--- | :--- | :--- | | **Loans: Held For Investment** | **$219,112** | **$1,104** | **0.5%** | **$18** | | Institutional Securities - HFI | $63,539 | $782 | 1.2% | $7 | | Wealth Management - HFI | $155,573 | $322 | 0.2% | $11 | | **Lending Commitments** | **$170,301** | **$619** | **0.4%** | **$61** | | **Consolidated Total** | **$410,658** | **$1,723** | **N/A** | **$79** | - The allowance for credit losses for loans and lending commitments decreased slightly from **$1.730 billion** at the end of Q2 2024 to **$1.723 billion** at the end of Q3 2024, reflecting net charge-offs of **$98 million** offset by a provision of **$79 million**[45](index=45&type=chunk) Supplemental Information [Definition of U.S. GAAP to Non-GAAP Measures](index=13&type=section&id=Definition%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Measures) This section defines non-GAAP financial measures like Tangible Common Equity and ROTCE, and explains adjustments for Deferred Cash-based Compensation plans - Key non-GAAP measures are used to evaluate operating performance and capital adequacy. These include: - **Tangible Common Equity:** Common equity less goodwill and intangible assets - **ROTCE:** Annualized net income as a percentage of average tangible common equity - **Tangible Book Value per Common Share:** Tangible common equity divided by common shares outstanding[36](index=36&type=chunk) - The firm presents certain results excluding the impact of mark-to-market gains and losses on Deferred Cash-based Compensation (DCP) investments. This adjustment aims to improve comparability of period-to-period performance by removing volatility from investment fluctuations linked to compensation[36](index=36&type=chunk)[40](index=40&type=chunk) [Legal Notice](index=18&type=section&id=Legal%20Notice) This legal notice advises reading the financial supplement in conjunction with the firm's Q3 earnings press release issued on October 16, 2024 - This financial supplement should be read in conjunction with the official third-quarter earnings press release from October 16, 2024[46](index=46&type=chunk)

Wall Street analysts expect Morgan Stanley (MS) to post quarterly earnings of $1.57 per share in its upcoming report, which indicates a year-over-year increase of 13.8%. Revenues are expected to be $14.27 billion, up 7.5% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earning ...

Morgan Stanley (MS) ended the recent trading session at $104.57, demonstrating a +0.05% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.17% loss on the day. Elsewhere, the Dow lost 0.44%, while the tech-heavy Nasdaq lost 0.04%. Heading into today, shares of the investment bank had gained 4.36% over the past month, outpacing the Finance sector's loss of 0.26% and the S&P 500's gain of 1.25% in that time. Market participants will be closely following the financial results of ...

Just three weeks ago, European Central Bank (ECB) officials believed that a rate cut at the October 17 policy meeting was unlikely. However, the situation has changed dramatically, making a 25 basis point cut almost certain.Commercial survey results have significantly worsened, inflation data has dropped below 2% for the first time in over three years, and the Federal Reserve's shift to a more accommodating stance has provided additional assurance. These factors have pushed ECB policymakers to the brink of ...

Company Performance - Morgan Stanley (MS) closed at $104.12, reflecting a -0.46% change from the previous day, underperforming the S&P 500's loss of 0.13% [1] - Over the past month, shares of Morgan Stanley have increased by 1.95%, outperforming the Finance sector's gain of 1.5% but lagging behind the S&P 500's gain of 2.43% [1] - The upcoming earnings release on October 17, 2024, is projected to show an EPS of $1.64, representing an 18.84% increase year-over-year, with revenue expected at $14.38 billion, up 8.31% from the prior year [1] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $7.02 per share and revenue of $58.88 billion, indicating increases of +28.57% and +8.75% respectively from the previous year [2] - Recent changes to analyst estimates reflect optimism regarding Morgan Stanley's business and profitability, with positive revisions correlating with potential stock price performance [2] Valuation Metrics - Morgan Stanley has a Forward P/E ratio of 14.89, which is a discount compared to the industry's average Forward P/E of 17.49 [3] - The company holds a PEG ratio of 1.07, compared to the average PEG ratio for the Financial - Investment Bank industry, which is 1.22 [3] Industry Overview - The Financial - Investment Bank industry is part of the Finance sector and currently holds a Zacks Industry Rank of 67, placing it in the top 27% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]