Bank of New York Mellon Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bank of New York Mellon (NYSE:BK) will unveil its latest earnings tomorrow, Wednesday, January 16, 2013. The Bank of New York Mellon is a global financial services company offering various products and services for individuals and institutions. The main activities of the company and its subsidiaries include asset management, wealth management, and broker-dealer and advisory services.

Bank of New York Mellon Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 54 cents per share, a rise of 12.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 56 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 55 cents during the last month. Analysts are projecting profit to rise by 1.4% compared to last year’s $2.06.

Past Earnings Performance: Last quarter, the company reported net income of 63 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 11.4% to $725 million (61 cents a share) from $651 million (53 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.1% to $3.8 billion from $3.85 billion.

Here’s how Bank of New York Mellon traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

BK

Wall St. Revenue Expectations: Analysts predict a rise of 2.3% in revenue from the year-earlier quarter to $3.6 billion.

Analyst Ratings: There are mostly holds on the stock with nine of 17 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 6.6% in the fourth quarter of the last fiscal year, 0.6% in first quarter and 6% in the second quarter and then fell again in the third quarter.

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the fourth quarter of the last fiscal year, the first quarter and the second quarter before snapping that run with a profit increase in the third quarter.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)