Morgan Stanley Stock Swings Higher After Impressive Earnings
Morgan Stanley stock moved into positive territory Tuesday as investors parse the investment banking firm's second-quarter earnings report.


Investors were hesitant on how to react after Morgan Stanley (MS) beat top- and bottom-line expectations for its second quarter. Shares of the banking giant were initially down more than 3% in pre-market trading but have since swung into positive territory.
In the quarter ended June 30, Morgan Stanley said its revenue was up 11.6% year-over-year to $15 billion, due in part to a 51% spike in investment banking revenue to $1.6 billion. The company also said its earnings per share (EPS) surged 46.8% from the year-ago period to $1.82.
"The biggest bright spot for MS was a clear rebound in the investment banking segment," says Brian Mulberry, client portfolio manager at Zacks Investment Management. "The return of Wall Street activity helped [the bank] post net income up 41% from a year ago showing an improving capital markets environment."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Mulberry says this allowed Morgan Stanley to give positive forward guidance, which has been a definable trend. "Markets are more concerned about the next couple of quarters, even more than recent results," he adds.
As for those recent results, they crushed analysts' expectations. Wall Street was anticipating Q2 revenue of $14.3 billion and earnings of $1.65 per share, according to CNBC.
The financial firm also reiterated that it will increase its dividend by 8.8% in the third quarter and said that it repurchased $800 million of common stock during the quarter as part of its recently announced $20 billion share repurchase program. Dividends and stock buybacks can boost value for shareholders.
"We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders," Morgan Stanley CEO Ted Pick said in a statement.
Is Morgan Stanley stock a buy, sell or hold?
Although the financial stock is up 15% for the year to date on a total return basis (price change plus dividends), Wall Street is sitting on the sidelines.
Of the 23 analysts tracked by S&P Global Market Intelligence, four rate it a Strong Buy, three call it a Buy and 16 have it at Hold. This works out to a consensus recommendation of a Hold. Meanwhile, the average analyst target price for MS stock is $100.54, representing a discount to current levels.
Related Content
- Bank of America Stock Pops After Q2 Earnings: What to Know
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales Revival
Strong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
Higher Summer Costs: Tariffs Fuel Inflation in June
Tariffs Your summer holiday just got more expensive, and tariffs are partially to blame, economists say.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales Revival
Strong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have Today
Berkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
New SALT Cap Deduction: Unlock Massive Tax Savings with Non-Grantor Trusts
The One Big Beautiful Bill Act's increase of the state and local tax (SALT) deduction cap creates an opportunity to use multiple non-grantor trusts to maximize deductions and enhance estate planning.
-
Know Your ABDs? A Beginner's Guide to Medicare Basics
Medicare is an alphabet soup — and the rules can be just as confusing as the terminology. Conquer the system with this beginner's guide to Parts A, B and D.
-
I'm an Investment Adviser: Why Playing Defense Can Win the Investing Game
Chasing large returns through gold and other alternative investments might be thrilling, but playing defensive 'small ball' with your investments can be a winning formula.
-
Stock Market Today: Powell Rumors Spark Volatile Day for Stocks
Stocks sold off sharply intraday after multiple reports suggested President Trump is considering firing Fed Chair Jerome Powell.
-
Callable CDs Have High Rates: We Still Don't Recommend You Get Them
Investors must carefully consider the trade-offs, as falling interest rates could lead to reinvestment at a lower yield and make selling on the secondary market difficult.
-
Five Big Beautiful Bill Changes and How Wealthy Retirees Can Benefit
Here's how wealthy retirees can plan for the changes in the new tax legislation, including what it means for tax rates, the SALT cap, charitable giving, estate taxes and other deductions and credits.