Valued at a market cap of $192.4 billion, Morgan Stanley (MS) is a financial holding company that provides various financial products and services to governments, financial institutions, and individuals. The New York-based company’s services include, investment banking, wealth management, asset management, and trading. It is expected to announce its fiscal Q1 earnings for 2025 on Tuesday, Apr. 15.

Ahead of this event, analysts expect this investment banking giant to report a profit of $2.32 per share, up nearly 14.9% from $2.02 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's earnings estimates in each of the last four quarters. In Q4 2024, MS’ EPS of $2.22 topped the forecasted figure by a notable margin of 34.6%. 

For fiscal 2025, analysts expect MS to report a profit of $8.58 per share, up 7.9% from  $7.95 in fiscal 2024. Furthermore, its EPS is expected to grow 9.1% year over year to $9.36 in fiscal 2026. 

Shares of MS have soared almost 16.1% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 3.6% rise, and the Financial Select Sector SPDR Fund’s (XLF) 14.5% return over the same time frame.

Recently, on Apr. 3, MS’ shares crashed 9.5% after President Trump announced new tariffs. The latest levies include a 34% tax on Chinese imports, 20% on European Union goods, and a baseline 10% tax on imports from all other countries. The announcement sent shockwaves through the entire financial markets, with the SPX and Nasdaq Composite ($NASX) experiencing their worst declines in years. Given Morgan Stanley’s significant international exposure, the firm is vulnerable to the potential economic fallout, contributing to the sharp decline in its stock price.

Nonetheless, on Jan. 16, shares of MS rose 4% after its better-than-expected Q4 earnings release. The company posted EPS of $2.22 and revenue of $16.2 billion, both handily surpassing Wall Street estimates. Compared to the same quarter last year, earnings surged by a notable 161.2%, while revenue grew 25.8%, driven by strong performance across all business segments. Its investment banking revenue saw a robust 24.5% increase, fueled by strong growth in advisory and underwriting fees. Additionally, wealth management revenue rose 12.5% from the year-ago quarter. Solid increase in client assets across wealth and investment management, further strengthened the company’s results.

Wall Street analysts are moderately optimistic about Morgan Stanley’s stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, six recommend "Strong Buy," one suggests a “Moderate Buy,” and 17 advise “Hold.” MS’ average analyst price target of $136.68, indicates a potential upside of 26.6% from the current levels.