Morgan Stanley Q2 Earnings Preview: EPS Expected at $2.94
0xBroomberg
Morgan Stanley reports second-quarter results before Wednesday's open, with Wall Street expecting EPS of $2.94 and revenue of $19.64 billion; peers have already beaten estimates by wide margins, raising the bar.
What is Wall Street expecting?
Refinitiv consensus: EPS $2.94, revenue $19.64 billion.
Business-line forecasts (StreetAccount): investment banking $2.17B, equities trading $4.41B, fixed-income trading $2.49B.
This means → equities trading alone accounts for over a fifth of expected revenue — the trading desk sets the tone for this report.
Peers already reported — where is the pressure?
JPMorgan and Goldman Sachs beat equities-trading estimates by a combined $4.4 billion in Q2; investment-banking fees topped forecasts by roughly $1 billion combined.
In plain terms = peers blew past expectations, which raises the market's appetite — if Morgan Stanley merely "meets," the stock reaction could be muted.
The global AI boom is seen as the main driver: a wave of AI-related IPOs and financing fueled both banking fees and trading volumes.
What will CEO Ted Pick signal?
Markets are equally focused on CEO Ted Pick's outlook for the second half.
This means → with geopolitical tensions still elevated, the exact wording of management's forward guidance may move the after-hours tape more than the numbers themselves.
In plain terms = the numbers look backward; the CEO's commentary looks forward — investors want to know whether this momentum can last into H2.
Content is for reference only, not financial advice.