Have you been eager to see how The Bank of New York Mellon Corporation (BK) performed in Q1 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 Beat
BNY Mellon came out with earnings per share of 67 cents, well ahead of the Zacks Consensus Estimate of 59 cents.
A rise in revenues was primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BNY Mellon depicted pessimism prior to the earnings release as the Zacks Consensus Estimate moved 1.7% down over the last 7 days.
BNY Mellon has a decent earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in three of the prior four quarters, with an average bet of 5.85% in the trailing four quarters.
Revenue Came In Higher Than Expected
BNY Mellon posted total revenues of $3.76 billion, which beat the Zacks Consensus Estimate of $3.73 billion. Moreover, it compared favorably with the year-ago figure of $3.63 billion.
Key Statistics:
§ Generated over 500 basis points of positive operating leverage year-over-year on an adjusted basis
§ Repurchased 10.3 million shares for $400 million
§ Board of Directors approved the repurchase of up to $3.1 billion of shares through the second quarter of 2016
Additionally, Gerald L. Hassell, chairman and chief executive officer of BNY Mellon said, “Earnings per share growth was driven by higher revenues across all of our businesses, our success in holding our expenses in check and generating positive operating leverage."
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.
Check back later for our full write up on this BNY Mellon earnings report!
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