Morgan Stanley (NYSE: MS) in the fourth quarter 2016 ended 31^st December has reported the adjusted earnings per share growth of 81 cents, beating the analysts’ estimates for the adjusted earnings per share to 65 cents. Morgan Stanley has reported the earnings per share of 39 cents in Q4 2015. Despite decent results, the stock is trading subdued this morning, falling over 2% (as of 10:04 AM EST on January 17^th, 2017; Source: Google finance).

Morgan Stanley had reported the adjusted revenue growth of 16.6 percent to $9.02 billion in the fourth quarter 2016, beating the analysts’ estimates for revenue of $8.47 billion. The earnings grew to $1.51 billion in the fourth quarter from $753 million a year earlier, which means the profit has doubled from the last year.

Moreover, the revenue from the bond business has more than doubled to $1.47 billion, exceeding the analysts’ estimates of $1 billion and the largest increase among banks that have already reported results. The equity trading grew 7.3 percent to $1.95 billion, compared with the analysts’ estimate of $1.84 billion.

Wealth-management revenue has increased 3 percent to $3.99 billion. Investment-banking revenue grew 5 percent to $1.38 billion from a year earlier due to the higher levels of completed mergers and issuance of non-investment-grade debt. Morgan Stanley is ranked second in worldwide announced M&A deals during 2016

For the full year 2016, MS has posted the net revenues of $34.6 billion compared with $35.2 billion in FY 15. The diluted earnings per share of FY 16 are $2.92 compared to $2.90 of diluted earnings per share in FY 15. For FY 16 the book value and tangible book value per common share were $36.99 and $31.98, respectively, which is based on about 1.9 billion shares outstanding.

MS is improving returns through the cost cutting and making bond-trading earnings more predictable. Trading in debt securities and stocks has surged after Donald Trump’s surprise election victory on November 8^th, 2016 as investors estimated that he would push policies that would boost the U.S. economy and kindle inflation. Additionally, MS has laid off a number of senior investment bankers earlier this month and cut bonuses by roughly 15 percent, therefore restructuring itself.

MS board of directors has declared a 20 cent quarterly dividend per share, payable on February 15^th, 2017, to common shareholders of record on January 31^st, 2017.

MS stock has risen 65.3% in the last one year (as of 10:04 AM EST on January 17^th, 2017; Source: Google finance). According to tipranks.com, 9 analysts has covered the stock while recommending a “Moderate Buy”. MS has an average price target of $45.25, which is a further upside of 3.29%.