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BNY Mellon (BK) Q1 Earnings Lag Estimates, Costs Decline

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Have you been eager to see how The Bank of New York Mellon Corporation (BK - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based financial services company’s earnings release this morning:

Earnings Miss

BNY Mellon came out with earnings of 94 cents per share, lagging the Zacks Consensus Estimate of 96 cents. The figure was down 15% from the prior year quarter.

Results were hurt by lower revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for BNY Mellon depicted a neutral trend prior to the earnings release. The Zacks Consensus Estimate of 96 cents remained stable over the last seven days.

BNY Mellon has a decent earnings surprise history. The company delivered positive surprises in three and matched in one of the trailing four quarters, with an average beat of 5.7%.

Revenues Lower-than-Expected

BNY Mellon posted total revenues (excluding income from consolidated investment management funds) of $3.87 billion, which decreased nearly 8% year over year. The figure lagged the Zacks Consensus Estimate of $3.99 billion.

Key Statistics

  • Provision for credit losses was $7 million
  • Assets under custody and/or administration grew 3% year over year
  • Repurchased 10.5 million common shares for $555 million during the quarter


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BNY Mellon. 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 unfavorable, 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 BNY Mellon earnings report!

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