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State Street (STT) Misses on Q3 Earnings & Revenue Estimates

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Have you been eager to see how State Street (STT - Free Report) performed in Q3 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 Miss

State Street came out with earnings of $1.87 per share, which missed the Zacks Consensus Estimate of $1.88.

Rise in expenses primarily hurt the results.

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 moved 3.1% downward over the last 30 days.

Nonetheless, State Street has an impressive earnings surprise history. Before posting the earnings miss in Q3, the company delivered positive surprises in each of the trailing four quarters, with an average beat of 4.4%.

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 of $2.95 billion, which lagged the Zacks Consensus Estimate of $3 billion. However, the figure was 3.7% above the prior-year quarter.

Key Statistics
 

  • Expenses increased 2.9% year over year to $2.08 billion
  • Achieved approximately $180 million of cost savings under Beacon in the first nine months of 2018
  • New asset servicing mandates totaled $1.8 trillion year to date
  • Assets under custody and administration were $34 trillion as of Sep 30, 2018
  • Assets under management were $2.8 trillion as of Sep 30, 2018
  • Plans to resume share repurchases in the first quarter 2019 and will buyback up to $600 million worth of shares through Jun 30, 2019


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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