Bank of New York Mellon Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bank of New York Mellon (NYSE:BK) will unveil its latest earnings on Wednesday, October 17, 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 profit of 54 cents per share, a rise of 1.9% 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 1.9% versus last year to $2.05.

Past Earnings Performance: Last quarter, the company beat estimates by 7 cents, coming in at net income of 57 cents per share against an estimate of profit of. The company also topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 36.6% to $466 million (39 cents a share) from $735 million (59 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 6% to $3.71 billion from $3.95 billion.

Stock Price Performance: Between July 18, 2012 and October 11, 2012, the stock price rose $1.70 (7.8%), from $21.69 to $23.39. The stock price saw one of its best stretches over the last year between September 10, 2012 and September 17, 2012, when shares rose for six straight days, increasing 4.4% (+$1.01) 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 2.2% in revenue from the year-earlier quarter to $3.6 billion.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 25.6% in the fourth quarter of the last fiscal year, by 1% in the first quarter and again in the second quarter.

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

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.

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

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