BNY Mellon Earnings: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component The Bank of New York Mellon Corporation (NYSE:BK) reported net income above Wall Street’s expectations for the third quarter. 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.

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The Bank of New York Mellon Corporation Earnings Cheat Sheet

Results: Net income for The Bank of New York Mellon Corporation rose to $750 million (61 cents per share) vs. $651 million (53 cents per share) in the same quarter a year earlier. This marks a rise of 15.2% from the year-earlier quarter.

Revenue: Fell 4.5% to $3.67 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Bank of New York Mellon Corporation beat the mean analyst estimate of 50 cents per share. Analysts were expecting revenue of $3.62 billion.

Quoting Management: “We are pleased to report solid earnings growth this quarter, led by the strength of Investment Management, which recorded its twelfth consecutive quarter of long-term inflows. New business trends for Asset Servicing were also strong, as we recorded the best quarter in new AUC wins since 2008, a testament to the breadth and quality of our capabilities. We remain focused on reducing expense growth through our operational excellence initiatives,” said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon.

Key Stats:

For four consecutive quarters, revenue has fallen. Revenue declined 6% to $3.71 billion in the second quarter. The figure fell 0.6% in the first quarter from the year earlier and dropped 6.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 36.6% from the year earlier, while the figure dropped 1% in the first quarter and 25.6% in the fourth quarter of the last fiscal year.

The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 53 cents versus a mean estimate of net income of 52 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 58 cents per share to 56 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $2.27 a share to $2.16 over the last ninety days.

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

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