Have you been eager to see how State Street Corporation (STT - Free Report) performed in Q2 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 $1.67 per share, which beat the Zacks Consensus Estimate of $1.57.
Rise in revenues primarily supported the results.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for State Street depicted a bullish stance prior to the earnings release. The Zacks Consensus Estimate increased by a penny over the last 7 days.
Also, State Street has a decent earnings surprise history. Before posting the earnings beat in Q2, the company delivered positive surprises in all four trailing quarters, with an average beat of 11.4%.
Revenue Came In Lower than Expected
State Street posted revenues (on GAAP basis) of $2.81 billion, which was below the Zacks Consensus Estimate of $2.84 billion.
Key Q2 Statistics
- New asset servicing mandates totaled $135 billion
- Restructuring costs associated with State Street Beacon were $62 million
- The acquired GE Asset Management operations delivered accretive earnings ahead of announced plans, excluding merger and integration costs
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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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