- ORIGINAL NEWS
Morgan Stanley revenue tops estimates, but CEO warns of geopolitical, economic risks ahead
- SUMMARY
Morgan Stanley’s fourth quarter earnings report showed mixed results.
While revenue surpassed expectations, net income fell by over 30% due to regulatory charges.
Investment banking revenue increased, driven by fixed income underwriting, but this could not fully offset the impact of the charges.
The new CEO, Ted Pick, acknowledged challenges in 2024, including geopolitical conflicts and potential economic downturn.
Wealth management and investment management revenues remained relatively stable.
Shares of Morgan Stanley initially rose premarket but ended up down slightly on the day.
- NEWS SENTIMENT CHECK
- Overall sentiment:
mixed
Positive
“Morgan Stanley reported fourth-quarter revenue that surpassed expectations, boosted by the strength in investment banking.”
“Revenue of $12.9 billion topped analysts’ estimates, and rose from $12.75 billion a year ago.”
“Wealth management delivered fourth-quarter net revenue of $6.65 billion, slightly higher than the $6.63 billion from the same quarter a year ago.”
Negative
“Shares of Morgan Stanley initially climbed in premarket trading following the results, but the stock last traded down 4%.”
“Net income came to $1.52 billion, or 85 cents per share, down more than 30% from $2.24 billion, or $1.26 per share, a year ago.”
“Shares of the New York-based bank have fallen nearly 4% in 2024 after a 10% gain last year.”