State Street's Q3 revenue rises 13%, slightly misses estimates
Overview
Global custody and asset servicing provider's Q3 revenue grew 13% yr/yr, slightly missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Q3 net interest income beat analyst estimates
Outlook
Company has $332 mln in servicing fee revenue to be installed in future periods
Company has $2.98 trln AUC/A wins to be installed in future periods
Result Drivers
RECORD FEES AND FX VOLUMES - Co said record servicing and management fees and record FX client volumes drove Q3 results
HIGHER FEE REVENUE - Growth in servicing, management, and FX trading services revenue contributed to overall fee revenue increase, partially offset by lower other fee revenue
NET INTEREST INCOME - Co said higher net interest income, supported by increased net interest margin, contributed to revenue growth
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $4.004 bln | $4.03 bln (12 Analysts) |
Q3 Adjusted EPS | Beat | $3.69 | $3.67 (15 Analysts) |
Q3 EPS | $3.69 | ||
Q3 Net Income | $1.09 bln | ||
Q3 Net Interest Income | Beat | $864 mln | $852.89 mln (9 Analysts) |
Q3 Credit Loss Provision | -$4 mln | ||
Q3 ROE | 16.4% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for State Street Corporation is $200.00, about 14.9% above its October 13 closing price of $174.10
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)