Morgan Stanley (MS) Reports Q4 Earnings: What Key Metrics Have to Say

Core Insights - Morgan Stanley reported a revenue of $16.22 billion for the quarter ended December 2024, marking a 25.8% increase year-over-year and exceeding the Zacks Consensus Estimate of $14.88 billion by 9.05% [1] - The company's EPS was $2.22, significantly higher than the $1.13 reported in the same quarter last year, and surpassed the consensus estimate of $1.65 by 34.55% [1] Financial Performance Metrics - Book value per common share was $58.98, exceeding the five-analyst average estimate of $58.18 [4] - Return on average common equity stood at 15.2%, compared to the estimated 11.1% by four analysts [4] - Total client assets in Wealth Management reached $6,194 billion, surpassing the estimated $5,764.14 billion [4] - Total assets under management were $1,666 billion, exceeding the two-analyst average estimate of $1,541.39 billion [4] Revenue Breakdown - Investment banking revenues were reported at $1.79 billion, matching the average estimate and reflecting a 26.6% year-over-year increase [4] - Commissions and fees generated $1.39 billion, exceeding the estimated $1.22 billion and representing a 25.2% increase from the previous year [4] - Net revenues from Investment Management were $1.64 billion, surpassing the estimated $1.51 billion and showing a 12.2% year-over-year growth [4] - Institutional Securities net revenues reached $7.27 billion, exceeding the estimated $6.18 billion and reflecting a 47.1% increase year-over-year [4] - Net interest revenue was $2.55 billion, above the estimated $2.10 billion, marking a 34.5% increase from the prior year [4] - Other revenues were reported at $438 million, below the estimated $501.05 million, indicating a decline [4] - Asset management revenues totaled $6.06 billion, exceeding the estimated $5.77 billion and representing a 20.2% year-over-year increase [4] - Total non-interest revenues were $13.67 billion, surpassing the average estimate of $12.70 billion and reflecting a 24.3% increase year-over-year [4] Stock Performance - Morgan Stanley's shares returned +7.9% over the past month, outperforming the Zacks S&P 500 composite, which saw a -1.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]