Morgan Stanley's Strong Financial Performance in Q1 2025

• Earnings per share of $2.60, surpassing the estimated $2.21.
• Revenue reached $17.74 billion, exceeding the estimated $16.54 billion.
• A 45% surge in equity trading contributed to record revenue.

Morgan Stanley (NYSE:MS) is a leading global financial services firm providing investment banking, securities, wealth management, and investment management services. The company competes with other major financial institutions like Goldman Sachs and JPMorgan Chase. On April 11, 2025, Morgan Stanley reported strong financial results, with earnings per share of $2.60, surpassing the estimated $2.21.

The company's revenue reached $17.74 billion, exceeding the estimated $16.54 billion. This impressive performance represents a 17% increase compared to the same period last year, as highlighted by Proactive Investors. A significant factor in this growth was a 45% surge in equity trading, which contributed to the record revenue of $17.7 billion.

Morgan Stanley's stock saw a 1.2% increase following the announcement of its first-quarter earnings. The positive market reaction was driven by the company's strong performance in equity trading and wealth management. The earnings per share of $2.60 marked a notable improvement from the $2.02 reported in the same quarter last year.

The company's financial metrics provide further insight into its market valuation. Morgan Stanley has a price-to-earnings (P/E) ratio of approximately 12.66, indicating how the market values its earnings. The price-to-sales ratio is about 2.91, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 7.70, showing the market's valuation of the company relative to its sales.

Morgan Stanley's financial health is also reflected in its debt-to-equity ratio of about 3.45, highlighting its leverage level. The current ratio of approximately 0.66 indicates the company's ability to cover short-term liabilities with short-term assets. Despite a high enterprise value to operating cash flow ratio of approximately 335.89, the earnings yield of 7.90% provides insight into the return on investment for shareholders.