Have you been eager to see how The Bank of New York Mellon Corporation (BK) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based financial services company’s earnings release this morning:
An Earnings Miss
BNY Mellon came out with adjusted earnings per share of 58 cents, missing the Zacks Consensus Estimate of 60 cents.
Lower revenues were primarily responsible for this earnings miss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BNY Mellon depicted optimism prior to the earnings release as the Zacks Consensus Estimate moved 3.4% higher over the last 30 days.
BNY Mellon has a decent earnings surprise history. Before posting an earnings miss in Q4, the company delivered positive surprises in the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 7.15% in the trailing four quarters.
Revenue Came In Lower Than Expected
BNY Mellon posted total revenues of 3.67 billion, which missed the Zacks Consensus Estimate of $3.78 billion. Moreover, it compared unfavorably with the year-ago number of 3.77 billion.
Key Developments to Note:
BNY Mellon returned 79% of its earnings to shareholders in the form of dividends and share repurchases in 2014, reflecting efficient capital deployment activities. Moreover, the company remained focused on controlling expenses to create positive operating leverage, strengthening capital position and creating value for the clients and shareholders.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BNY Mellon. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.
How the Market Reacted So Far
Following the earnings release, BNY Mellon shares were down marginally in the pre-trading session. This is contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this BNY Mellon earnings report!
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