Morgan Stanley reported better-than-expected third-quarter profit on Wednesday, ending a string of three straight losing quarters.

Results were bolstered by strong fixed income sales and trading revenue and improved investment banking underwriting results.

The New York-based firm reported net income for common shareholders of $498 million, or 38 cents a share. Analysts on average had forecast earnings of 27 cents a share, according to Thomson Reuters I/B/E/S.

In the year-earlier quarter earnings were $7.7 billion, or $7.38 a share, boosted by a one-time accounting gain resulting from declines in the value of certain liabilities in the bank's portfolio.

Morgan Stanley shares were up 1 percent to $32.90 in premarket trading.

(Reporting by Steve Eder; editing by John Wallace)