Why did MS's EPS surprise rise in 2024?

Morgan Stanley's (MS) EPS surprise rose in 2024 due to several key factors:

1. **Strong Performance in Wealth and Investment Management**: Morgan Stanley's Wealth Management segment delivered record net revenues of $7.3 billion, with a pre-tax margin of 28.3%. The segment added $64 billion in net new assets, bringing total client assets to $6 trillion. This strong performance was a significant contributor to the overall financial results.
2. **Institutional Securities**: The Institutional Securities segment reported net revenues of $6.8 billion, driven by increased client activity in Equity and Fixed Income, and a significant rise in Investment Banking revenues. This segment's performance was notable, with broad-based revenue growth of approximately 20% across all major regions in 2024.
3. **Investment Management**: Net revenues in Investment Management were $1.5 billion, primarily driven by higher average assets under management (AUM) and positive long-term net flows. This segment's performance added to the overall financial strength of the company.
4. **Strategic Initiatives**: Morgan Stanley's strategic initiatives, such as the share repurchase program and dividend declaration, contributed to the financial results. The firm repurchased $0.8 billion of its outstanding common stock during the quarter and declared a dividend of $0.925 per share.

In summary, Morgan Stanley's EPS surprise rose in 2024 due to strong performance in Wealth and Investment Management, Institutional Securities, Investment Management, and strategic initiatives. These factors, combined with effective capital management, contributed to the company's robust financial results.