Have you been eager to see how State Street Corporation (STT) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this MA -based popular bank’s earnings release this morning:
An Earnings Beat
State Street came out with operating earnings per share of $1.37, beating the Zacks Consensus Estimate of $1.25.
Improved top line was largely responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for State Street depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved nearly 1% up over the last 7 days.
Also, State Street has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in the two out of the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.16% in the trailing four quarters.
Revenue Came In Higher Than Expected
State Street posted revenues of $2.72 billion, which significantly beat the Zacks Consensus Estimate of $2.67 billion. However, it compared favorably with the year-ago number of $2.53 billion.
Key Statistics to Note:
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New asset servicing mandates Q4 totaled approximately $400 billion.
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Completed Business Operations and Information Technology Transformation program at the end of 2014, achieving more than $625 million of total annualized pre-tax savings with full effect in 2015.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for State Street. 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 favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this State Street earnings report!
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