What You Need to Know Ahead of Morgan Stanley’s Earnings Release

Core Viewpoint - Morgan Stanley is set to report its fiscal 2025 third-quarter earnings, with analysts expecting an earnings per share (EPS) of $2.03, reflecting an 8% increase from the previous year [1][2]. Financial Performance - The bank has consistently outperformed Wall Street's profit estimates for the past four quarters, with the most recent EPS reported at $2.13, exceeding consensus by 10.4% [2][3]. - For fiscal 2025, earnings are projected to rise 11.5% to $8.86 per share, up from $7.95 in fiscal 2024, followed by an 8.1% increase in fiscal 2026, reaching $9.58 [3]. Stock Performance - Morgan Stanley's shares have increased approximately 55.3% over the past year, significantly outperforming the S&P 500 Index, which returned 15.4%, and the Financial Select Sector SPDR Fund, which gained 19.4% [4]. - Despite strong second-quarter results, shares dipped nearly 1.3% due to a decline in investment banking revenue, which tempered investor enthusiasm [5]. Analyst Ratings - The overall rating for Morgan Stanley is "Moderate Buy," with 25 analysts covering the stock: six recommend "Strong Buy," three suggest "Moderate Buy," and 16 have issued a "Hold" [6]. - The current trading price is above the average analyst price target of $146.31, but the highest target of $165 indicates potential upside of approximately 3.8% from current levels [6].