Morgan Stanley(US:MS) ZACKS·2026-01-08 16:01Core Viewpoint - Morgan Stanley is expected to report a year-over-year increase in earnings and revenues for the quarter ended December 2025, with consensus estimates indicating a potential impact on its stock price depending on actual results compared to expectations [1][2]. Earnings Expectations - The consensus EPS estimate for Morgan Stanley is $2.36 per share, reflecting a year-over-year increase of +6.3% [3]. - Revenues are projected to be $17.35 billion, which is a 6.9% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 4.05% higher, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Morgan Stanley is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.72% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a higher likelihood of an earnings beat, especially when combined with a Zacks Rank of 1 [10]. - Morgan Stanley currently holds a Zacks Rank of 1, indicating strong potential for beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Morgan Stanley exceeded the expected earnings of $2.08 per share by delivering $2.80, resulting in a surprise of +34.62% [13]. - The company has successfully beaten consensus EPS estimates in each of the last four quarters [14]. Industry Context - Citigroup, a peer in the investment banking sector, is expected to report earnings of $1.59 per share for the same quarter, reflecting a year-over-year change of +18.7% [18]. - Citigroup's revenue is anticipated to be $20.94 billion, up 7% from the previous year [18]. However, it has a negative Earnings ESP of -12.71%, making predictions about beating consensus EPS estimates less certain [19].