State Street Corp Earnings: Third Straight Quarter of Rising Profit

S&P 500 (NYSE:SPY) component State Street Corporation (NYSE:STT) reported its results for the fourth quarter. State Street provides a range of investment management strategies, investment management advisory services and other financial services.

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State Street Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for State Street Corporation rose to $381 million (76 cents per share) vs. $83 million (16 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Revenue was $2.31 billion last quarter.

Actual vs. Wall St. Expectations: STT reported adjusted net income of 93 cents per share. By that measure, the company fell short of mean estimate of 94 cents per share. It fell short of the average revenue estimate of $2.4 billion.

Quoting Management: Joseph L. Hooley, State Street’s chairman, president and chief executive officer, said, “Overall, 2011 was a very successful year amid extremely challenging market conditions. Revenue in the year was characterized by a strong first half followed by a weaker second half, the result of volatile markets and risk-averse investor behavior. Despite these conditions, comparing 2011 with 2010, we were able to achieve strong growth in both revenue and earnings per share.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 1.6% and in the second quarter, the figure rose 18.8%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 8 cents, and in the second quarter, it was ahead by 5 cents.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 88 cents a share to 93 cents over the last ninety days. The average estimate for the fiscal year is $3.74 per share, a rise from $3.66 ninety days ago.

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).

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

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com