Morgan Stanley (NYSE:MS) is preparing to release its quarterly earnings on July 16, 2025. Analysts expect the company to report earnings per share (EPS) of $1.93 and revenue of approximately $16.04 billion. This announcement will occur before the market opens, drawing significant attention from investors and analysts.
The anticipated increase in Morgan Stanley's second-quarter earnings is largely driven by strong trading activities and a rise in net interest income (NII). The company's trading revenues are expected to have surged due to market volatility, with equity trading experiencing a 14.8% increase compared to the previous year. Additionally, net interest income is projected to grow by 9.8% year-over-year, supported by stable interest rates and strong loan growth.
Despite these positive trends, Morgan Stanley may face challenges with a decline in investment banking income and underwriting fees, even with a stronger IPO market. The company's earnings announcement, along with the subsequent management conference call, is expected to attract significant attention, especially in light of potential impacts from Trump's tariff plans, as highlighted by Zacks.
In the first quarter, Morgan Stanley delivered strong results, driven by robust investment banking and trading performance. For the second quarter, the Zacks Consensus Estimate suggests revenues will reach $15.92 billion, indicating a 6% growth compared to the previous year. However, there has been a slight downward revision of 0.7% in the consensus EPS estimate over the past 30 days, reflecting a reassessment by analysts.
Morgan Stanley's stock has shown resilience, recovering from previous market turmoil and achieving an all-time high with a 36% appreciation in 2024. For the second quarter, consensus estimates project revenue of $16.03 billion and EPS of $2.02, indicating strong year-over-year growth. The company's favorable market conditions have led to an upgrade in its rating from "hold" to "buy."
