S&P 500 (NYSE:SPY) component Bank of New York Mellon (NYSE:BK) will unveil its latest earnings on Wednesday, July 18, 2012. 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 net income of 52 cents per share, a decline of 11.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 54 cents during the last month. Analysts are projecting profit to rise by 3.8% versus last year to $2.17.
Last quarter, the company came in at profit of 53 cents per share against a mean estimate of net income of 52 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 6 cents.
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Stock Price Performance: Between April 17, 2012 and July 12, 2012, the stock price fell $2.75 (-11.6%), from $23.80 to $21.05. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 7.6% (+$1.64) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 17.7% (-$3.81) over that span.
Wall St. Revenue Expectations: Analysts are projecting a decline of 4% in revenue from the year-earlier quarter to $3.63 billion.
Analyst Ratings: With seven analysts rating the stock as a buy, two rating it as a sell and nine rating it as a hold, there are indications of a bullish outlook.
The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 25.6% in the fourth quarter of the last fiscal year and then again in the first quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.6% in the fourth quarter of the last fiscal year and dropped again in the first quarter.
A Look Back: In the first quarter, profit fell 1% to $619 million (52 cents a share) from $625 million (50 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.6% to $3.79 billion from $3.81 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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