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State Street (STT) Beat on Q2 Earnings & Revenue Estimates

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Have you been eager to see how State Street (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 adjusted earnings of $1.45 per share, which beat the Zacks Consensus Estimate of $1.40.

Lower expenses supported 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 2.8% downward over the past seven days.

Nonetheless, State Street has an impressive earnings surprise history. Before posting the earnings beat in Q2, the company delivered positive surprises in three of the trailing four quarters, with an average beat of 1.6%.

State Street Corporation Price and EPS Surprise

State Street Corporation Price and EPS Surprise

State Street Corporation price-eps-surprise | State Street Corporation Quote

Revenue Came in Higher than Expected

State Street posted revenues of $2.87 billion, which beat the Zacks Consensus Estimate of $2.85 billion. However, the figure was 2% down from the prior-year quarter.

Key Q2 Statistics
 

  • Including notable items, earnings came in at $1.42 per share
  • Expenses decreased 1% year over year to $2.15 billion
  • Assets under custody and administration were $32.7 trillion as of Jun 30, 2019
  • Assets under management were $2.9 trillion as of Jun 30, 2019
  • Returned roughly $475 million to shareholders, consisting of $300 million worth of share repurchases and nearly $175 million in dividends


The company achieved $175 million in savings in the first six months of 2019. Now, State Street projects to generate roughly $400 million in cost savings, up from prior target of $350 million.   

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) 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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