Goldman Sachs and Morgan Stanley Post Stellar Earnings Results

Investment powerhouses Goldman Sachs and Morgan Stanley have exceeded expectations with their latest earnings reports. Both firms showcase impressive growth metrics, setting the stage for potential stock price increases in the near term.

Date: 06-02-2025

AI Rating: 8

Goldman Sachs Performance Overview
Goldman Sachs reported remarkable financial figures for Q4 2024, showcasing an EPS of $11.95, significantly beating consensus estimates by $3.74. Their net earnings reached $4.11 billion, fueling optimism about the firm's ongoing revenue growth. The company's revenue surged by 22.5% year over year, amounting to $13.87 billion, exceeding estimates of $12.36 billion.

The full-year performance was equally impressive, with an EPS of $40.54, up from $22.87 in 2023, thereby indicating substantial growth. Additionally, net revenues for the full-year climbed 16% YoY to $53.51 billion, contributing to an overall net income of $14.28 billion.

Morgan Stanley Performance Overview
Morgan Stanley similarly crushed estimates with a reported EPS of $2.22 for Q4 2024, surpassing expectations by 52 cents. The firm achieved a revenue of $16.23 billion, up 25.9% and maintaining a strong lead over the anticipated $15.03 billion. Furthermore, the company showed effective expense management with an efficiency ratio of 71%, compared to 77% the previous year.

In terms of segments, Institutional Securities reported net revenues of $7.3 billion with pre-tax income increasing significantly to $2.4 billion. The growth in equity and fixed income net revenues, at 51% and 35% YoY respectively, indicates solid client engagement and market activity.

Conclusion
Both Goldman Sachs and Morgan Stanley showcased exceptional earnings performance and growth metrics in their latest quarterly reports, highlighting their leading positions in the finance sector. The surge in revenue and solid earnings per share sets a positive tone for future stock price movements.

Stocks: GS MS