S&P 500 (NYSE:SPY) component State Street Corporation (NYSE:STT) reported its results for the second quarter. State Street Corp. provides a range of investment management strategies, investment management advisory services and other financial services.
State Street Earnings Cheat Sheet for the Second Quarter
Results: Net income for the financial services company rose to $513 million (96 cents per share) vs. $432 million (87 cents per share) in the same quarter a year earlier. This marks a rise of 18.8% from the year earlier quarter.
Revenue: Revenue rose 8% to $2.49 billion.
Actual vs. Wall St. Expectations: STT fell short of the mean analyst estimate of 97 cents per share. It beat the average revenue estimate of $2.39 billion.
Quoting Management: Joseph L. Hooley, State Street’s chairman, president and chief executive officer, said, “In the second quarter we achieved strong growth in fee revenue due to continued momentum in servicing and management fee revenues driven by global client demand, and supported by seasonal factors affecting securities finance. We achieved positive operating leverage on an operating basis, comparing this year’s second quarter with the first quarter, based on our continuing efforts to manage expenses.”
The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 3 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.
Competitors to Watch: The Bank of New York Mellon Corp. (NYSE:BK), Northern Trust Corporation (NASDAQ:NTRS), Citigroup Inc. (NYSE:C), SEI Investments Company (NASDAQ:SEIC), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Goldman Sachs Group, Inc. (NYSE:GS), Barclays PLC (NYSE:BCS), FXCM Inc (NYSE:FXCM), and Morgan Stanley (NYSE:MS).
(Source: Xignite Financials)