Have you been eager to see how State Street Corporation (STT) performed in Q1 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 $1.17, beating the Zacks Consensus Estimate of $1.05.
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 neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last 7 days.
Also, State Street has a decent earnings surprise history. Before posting an earnings beat in Q1, the company delivered positive surprises in the three out of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 7.40% in the trailing four quarters.
Revenue Came In Higher Than Expected
State Street posted revenues of $2.68 billion, which surpassed the Zacks Consensus Estimate of $2.67 billion. Also, it compared favorably with the year-ago number of $2.56 billion.
Key Statistics to Note:
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New asset servicing mandates Q1 totaled approximately $214 billion.
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In asset management, State Street witnessed net outflows of $38 billion mainly due to seasonal outflows from SPY, the S&P 500 ETF.
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Following the approval of 2015 capital plan, board of directors approved repurchase of up to $1.8 billion of shares through Jun 30, 2016. Also, the company intends to increase to quarterly dividend to $0.34 per share starting in the second quarter of 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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