Shares of Morgan Stanley gained in early trading Thursday, after the bank and broker beat both profit and revenue expectations for the latest quarter, fueled by strength in the equity and bond trading businesses.

Morgan Stanley said its profit more than doubled in the fourth quarter, fueled by its investment banking and trading businesses. Profit surged 145% to $3.71 billion. That amounted to $2.22 per share,

Morgan Stanley turned in $3.7 billion of profit in the fourth quarter, up 147% from a year earlier and exceeding analysts’ estimates of $2.7 billion. The New York-based investment bank posted per-share earnings of $2.

Morgan Stanley easily beat fourth-quarter profit and revenue estimates on strong equity trading and IPO activity.

Morgan Stanley’s stock outpaced gains in other financial stocks Thursday, after the bank and broker forecast a robust flow of deals as it beat both profit and revenue expectations for the latest quarter.

Morgan Stanley's profit increased in the fourth quarter, fueled by a wave of dealmaking and stock sales that drove its revenue to a full-year record. Investment banking fees gained from a surge in mergers and acquisitions as sentiment was boosted by a strong U.

Morgan Stanley’s institutional securities group, which houses its investment banking and trading businesses, reported revenue of $7.3 billion in the fourth quarter, a 49% jump from $4.9 billion a year earlier.

CNBC's Leslie Picker joins 'Squawk Box ' to report on the company's quarterly earnings results.

Jefferies analyst Daniel Fannon updated the firm's outlook on Morgan Stanley (NYSE:MS) shares, raising the price target to $151 from $144, while reaffirming a Buy rating on the stock. The company, currently trading at $135.