Morgan Stanley shares pop 7% after beating estimates for third quarter profit and revenue

Morgan Stanley is set to report third-quarter earnings before the opening bell Wednesday.

Here’s what Wall Street expects:

• Earnings: $1.58 a share, according to LSEG
• Revenue: $14.41 billion, according to LSEG
• Wealth management: $6.88 billion, according to StreetAccount
• Trading: Equities of $2.77 billion, Fixed Income of $1.85 billion, according to StreetAccount
• Investment Banking: $1.36 billion, according to StreetAccount

Morgan Stanley has several tailwinds in its favor.

The bank’s massive wealth management business will be helped by high stock market values in the quarter, which inflates the management fees the bank collects.

Investment banking has rebounded after a dismal 2023, a trend that may continue as easing rates will encourage more financing and merger activity.

Finally, its Wall Street rivals have posted better-than-expected trading results, making it unlikely that the firm missed out on elevated activity.

JPMorgan Chase, Goldman Sachs and Citigroup topped expectations, helped by better-than-expected revenue from trading or investment banking.

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