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State Street (STT) Beats on Q1 Earnings, Revenue Lags

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Have you been eager to see how State Street Corporation (STT - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this MA -based popular company’s earnings release this morning:

An Earnings Beat

State Street came out with operating earnings of $1.21 per share, which beat the Zacks Consensus Estimate of $1.10.

Rise in revenues primarily drove the earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for State Street depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate declined 1.8% over the last 7 days.

Also, State Street has a decent earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in all four trailing quarters, with an average beat of 11.42%.

State Street Corporation Price and EPS Surprise

 

State Street Corporation Price and EPS Surprise | State Street Corporation Quote

Revenue Came In Lower than Expected

State Street posted revenues (on GAAP basis) of $2.67 billion, which was below the Zacks Consensus Estimate of $2.75 billion.

Key Q1 Statistics
 

  • Net ETF inflows of $12 billion in asset management business
  • New asset servicing mandates totaled $110 billion
  • Repurchased approximately $523 million worth of shares, including shares received as part of the sale of BFDS/IFDS
  • Restructuring costs associated with State Street Beacon were $16 million


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for State Street. However, is since the latest earnings performance 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.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this State Street earnings report!

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