Morgan Stanley (MS) Beats Estimates with $20.34B in Revenue

Morgan Stanley (MS) reported third-quarter earnings per share of $3.03, surpassing the LSEG estimate of $2.91. The company's revenue also exceeded expectations, at $20.34 billion compared to the $19.95 billion estimate. Profit increased by 6.5% to $4.91 billion. These results were driven by significant growth in the firm's equities trading division, which saw a 41% revenue increase to $5.8 billion, outperforming StreetAccount's estimate by $909 million. Despite this, fixed income trading revenue fell 7% to $2.01 billion, approximately $260 million below expectations, while investment banking revenue increased slightly by 2% to $2.16 billion, which was $110 million below estimates. CEO Ted Pick highlighted Asia as a key area of strength for the equities division. Shares of Morgan Stanley dropped less than 1% in premarket trading. Analysts are keen to hear CEO Ted Pick's outlook on mergers and IPOs for the rest of the year, particularly given rising interest rates. These results are important as they demonstrate Morgan Stanley's resilience in equities trading, potentially offsetting weaker performance in other divisions.