Morgan Stanley Shines with Strong Q4 Results, Shares Up 3%

Morgan Stanley (NYSE:MS) exceeded analyst expectations for the fourth quarter, delivering robust earnings and revenue growth across its core business segments. Following the release, the investment bank's stock gained more than 3% intra-day today.

The firm reported adjusted earnings per share of $2.22, well above the Street consensus of $1.64. Quarterly revenue surged to $16.2 billion, beating estimates of $14.76 billion and representing a 26% jump compared to $12.9 billion in the same period last year.

Key divisions contributed significantly to the strong results. Institutional Securities, Morgan Stanley's trading and investment banking arm, reported a 47% year-over-year revenue increase to $7.3 billion. Within this segment, equity trading revenue surged 51% to $3.3 billion, while fixed income trading revenue climbed 35% to $1.9 billion.

The Wealth Management division also delivered impressive growth, with revenue rising 13% to $7.5 billion, fueled by record asset management fees and higher transactional activity. Investment Management revenue rose 12% to $1.6 billion, supported by increased average assets under management.

For the full year 2024, the bank reported net revenues of $61.8 billion, a significant increase from $54.1 billion in 2023. Net income applicable to the firm rose to $13.4 billion, or $7.95 per diluted share, compared to $9.1 billion, or $5.18 per share, in the prior year.