Banking giant Morgan Stanley shared its quarterly earnings report on Wednesday, unveiling a massive quarterly profit jump and better-than-expected revenue gains across all of its three main divisions. This sent the investment bank’s stock surging to a record close of $119.51 per share.
Morgan Stanley’s earnings per share for the third quarter of 2024 came at $1.88 a share, surpassing the expectations of analysts, who estimated $1.58 in EPS. The company recorded $3.2 billion in profit, marking a 32% year-over-year jump.
Its revenue also increased by 16% compared to the same period of 2024, coming at $15.38 billion. The analysts expected revenue of $14.41 billion for Q3.
A strong quarter for Morgan Stanley was marked by a rebound in trading activity, initial public offerings (IPOs), and mergers. The recovery of investment banking is expected to be further fueled by recent rate cuts by the Federal Reserve.
“I’m bullish on IPOs and M&A coming back,” said Morgan Stanley CEO Ted Pick during a conference call with analysts. “It may take some time, and the size of the companies when they come will be likely larger.”
Morgan Stanley’s stock surged by 6.5% on Wednesday, reaching an all-time high of $121.13 per share at one point before settling at a record $119.51 per share by the end of the day. The stock is currently 27.27% up year-to-date.