Live Updates Live Coverage Updates appear automatically as they are published. Upgrades and Downgrades for Bank Stocks 9:23 am Ticker Company Analyst Firm Rating (Unchanged) New Price Target (Old) Reasons C Citigroup Barclays Overweight $100 ($95) Q2 earnings beat estimates; NII ahead, though fees worse; pointed to 2025 revenues at high-end of guidance, offset by slight expense increase. C Citigroup Morgan Stanley Overweight $107 ($103) High-quality EPS beat; raised guidance; doubled share repurchases to at least $4B in Q3; expects 10% ROTCE in 2026. C Citigroup Piper Sandler Overweight $104 ($84) Increasing EPS estimates post-Q2; story checks all right boxes as a winner this quarter. JPM JPMorgan Morgan Stanley Equal Weight $298 ($296) Strong 11% EPS beat vs. consensus; raised NII guidance; highlighted potential uses of excess capital, including inorganic opportunities (high bar). BK BNY Mellon Morgan Stanley Overweight $101 ($95) 11% EPS beat driven by fees and NII; sixth straight quarter of positive operating leverage; early success in platform’s operating model. HWC Hancock Whitney Piper Sandler Overweight $72 ($70) Strong Q2 driven by ~6% LQA loan growth, enhanced asset quality, and strategic progress with Sabal Trust acquisition. NIC Nicolet Bankshares Piper Sandler Neutral $140 ($122.50) Q2 exceeded expectations via stronger NII (7% PPNR upside); impressive profitability (1.5%+ ROA, mid-teens ROTCE); outlook for low-to-mid-single digit growth, NIM expansion, efficiencies, benign credit. VBTX Veritex Holdings Piper Sandler Overweight Neutral Upside realized with market’s positive reaction to merger announcement with Huntington Bancshares (HBAN). A look at Banks pre-market 8:23 am JP Morgan (JPM): Up .18% Goldman Sachs (GS): Up 1.07% CitiGroup (C): Up .39% Bank of America (BAC): Up 1.11% Wells Fargo (WFC): Down .20% Morgan Stanley Q2 Numbers 7:42 am by Eric Bleeker Morgan Stanley Q2’25 Earnings Highlights: • Adj. EPS: $2.13 ; UP +17% YoY • Revenue: $16.8B ; UP +12% YoY • Adj. Gross Margin: 28.0% ; UP +100 bps YoY • Net Income: $3.5B ; UP +15% YoY Q2 Segment Performance: • Institutional Securities Revenue: $7.6B ; UP +9% YoY • Wealth Management Revenue: $7.8B ; UP +14% YoY • Investment Management Revenue: $1.6B ; UP +12% YoY Other Key Q2 Metrics: • Adj. Operating Income: $4.6B ; UP +13% YoY • Adj. Operating Expenses: $11.9B ; UP +10% YoY • Effective Tax Rate: 22.7% (vs. 23.5% YoY) • Book Value per Share: $61.59; UP +8% YoY • Tangible Book Value per Share: $47.25; UP +12% YoY • Return on Equity: 13.9%; UP +90 bps YoY • Return on Tangible Common Equity: 18.2%; UP +70 bps YoY • Compensation Expense: $7.2B; UP +11% YoY • Non-compensation Expenses: $4.8B; UP +9% YoY • Common Stock Repurchases: $1.0B • Number of Shares Repurchased: 8M • Average Price of Shares Repurchased: $123.22 CEO Commentary: – Ted Pick: “Morgan Stanley delivered another strong quarter. Six sequential quarters of consistent earnings – $2.02, $1.82, $1.88, $2.22, $2.60 and $2.13 – reflect higher levels of performance in different market environments. Institutional Securities saw strength and balance across businesses and geographies. Wealth continues to deliver, adding $59 billion of net new assets and $43 billion of fee-based flows. Total client assets across Wealth and Investment Management reached $8.2 trillion. We announced an increase of our quarterly common stock dividend to $1.00 per share with flexibility to deploy incremental capital. The management team is executing across the Integrated Firm, acting as a trusted advisor to clients and driving durable growth and long-term returns for our shareholders.” Strategic Updates: – The Board of Directors reauthorized a multi-year common equity share repurchase program of up to $20 billion, without a set expiration date, beginning in the third quarter of 2025. Earnings Are Out 7:39 am by Eric Bleeker Morgan Stanley earnings are out – second quarter EPS is $2.13. That’s above Wall Street expectations of $1.98. We will continue providing analysis in this live article. Still No Morgan Stanley Earnings 7:20 am by Eric Bleeker We still don’t have Morgan Stanley’s earnings out, but Bank of America’s have been released. The company beat on the bottom line but slightly missed on revenue. Shares are up 1.5% in premarket trading. Before Today's Earnings: A Look Back at Q1 7:00 am by Eric Bleeker With Morgan Stanley about to report its Q2 earnings, let’s look back at some key figures from their Q1 report. $MS | Morgan Stanley Q1’25 Earnings Highlights: • Adj. EPS: $2.60 • Revenue: $17.7B Q1 Segment Performance: • Institutional Securities Revenue: $9.0B ; UP +28% YoY • Wealth Management Revenue: $7.3B ; UP +15% YoY • Investment Management Revenue: $1.6B ; UP +16% YoY Other Key Q1 Metrics: • Effective Tax Rate: 21% (vs. 22% YoY) • CET1 Ratio: 15.3% CEO Commentary: – Edward N. Pick: “The Firm delivered a very strong quarter with $17.7 billion in revenue, $2.60 in EPS and a 23% return on tangible. Wealth added $94 billion of net new assets, bringing the Firm total to $7.7 trillion. Equities had a record $4 billion-plus quarter, which led to strong results across institutional securities. Morgan Stanley delivered returns while supporting clients, buying back stock opportunistically and building $2 billion of capital.” CFO Commentary: – Sharon Yeshaya: “The firm produced record revenues of $17.7 billion and EPS of $2.60 with a strong ROTCE of 23%. The results demonstrate the power of advice and supporting clients as the intermediary of capital across products and geographies, particularly during periods of uncertainty.” Strategic Updates: – The firm continues to invest in technology and automation to enhance operational efficiency and client service capabilities, while maintaining a disciplined approach to capital allocation amidst market volatility. Morgan Stanley (NYSE: MS) reports before the bell today. Large financial companies struggled yesterday. Stocks in the Financials sector declined 1.71%. Both Wells Fargo (NYSE: WFC) and BlackRock (NYSE: BLK) saw particularly steep declines after reporting earnings. Will Morgan Stanley plummet as well? We’ll be updating this live article with analysis after the company’s earnings drop. Let’s take a look at the need-to-know figures Wall Street is watching. Q2 Earnings Expectations Here are the key figures Wall Street is expecting when Morgan Stanley’s earnings release: Revenue: $16.02 billion EPS (Normalized): $1.98 Book Value/Share: $61.38 Net Income (GAAP): $3.14 Billion Key Areas to That Could Drive Today’s Performance What areas will determine whether Morgan Stanley’s stock rises or falls after today’s earnings release and conference call (scheduled for 8:30 a.m. ET). Wealth Management Margins: Last quarter normalized pre-tax margins for Wealth Management came in below their target (30 to 32%). With net interest income (NII) on the decline and exepnse pressures, any continued margin pressure in this unit could cause Morgan Stanley’s stock to sell off today. How Significant is NII Pressure: Wells Fargo shares fell yesterday on NII pressure and Morgan Stanley came in below many peers last quarter. If the company sees NII continue to trend down, it could be the primary area Wall Street focuses on today. Investment Banking Rebound: Investment banking was a bright spot in the first quarter. If Morgan Stanley speaks bullishly about its pipeline headed into the second half of the year and 2026, that could be a share price catalyst today. The post Live Earnings Updates: Morgan Stanley (NYSE: MS) Earnings Release Before the Bell appeared first on 24/7 Wall St..