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Compared to Estimates, State Street Corporation (STT) Q4 Earnings: A Look at Key Metrics

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State Street Corporation (STT - Free Report) reported $3.04 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 3.6%. EPS of $2.04 for the same period compares to $2.07 a year ago.

The reported revenue represents a surprise of +3.43% over the Zacks Consensus Estimate of $2.94 billion. With the consensus EPS estimate being $1.81, the EPS surprise was +12.71%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how State Street Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net interest margin (FTE): 1.2% versus 1.1% estimated by five analysts on average.
  • Average balance - Total interest-earning assets: $232.23 billion versus the four-analyst average estimate of $220.43 billion.
  • Basel III Advanced Approaches - Tier 1 Leverage Ratio: 5.5% versus the four-analyst average estimate of 5.5%.
  • Basel III Standardized Approach - Tier 1 capital ratio: 13.4% versus the three-analyst average estimate of 12.8%.
  • Assets under Management (AUM): $4,130 billion versus $3,799.35 billion estimated by three analysts on average.
  • Assets under Custody and/or Administration (AUC/A): $41,810 billion compared to the $35,179.74 billion average estimate based on two analysts.
  • Basel III Standardized Approach - Total capital ratio: 15.2% versus 14.3% estimated by two analysts on average.
  • Net Interest Income: $678 million compared to the $589.24 million average estimate based on five analysts.
  • Total fee revenue: $2.37 billion versus the five-analyst average estimate of $2.36 billion.
  • Net Interest Income - fully taxable-equivalent basis: $679 million versus the five-analyst average estimate of $591.14 million.
  • Software and processing fees: $237 million compared to the $237.70 million average estimate based on four analysts.
  • Other fee revenue: $33 million versus the four-analyst average estimate of $37.26 million.
View all Key Company Metrics for State Street Corporation here>>>

Shares of State Street Corporation have returned -3.5% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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