State Street Earnings: Everything You Must Know Now

State Street Corp. (NYSE:STT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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State Street Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.29% to $0.96 in the quarter versus EPS of $0.84 in the year-earlier quarter.

Revenue: Decreased 3.55% to $2.47 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: State Street Corp. reported adjusted EPS income of $0.96 per share. By that measure, the company beat the mean analyst estimate of $0.93. It missed the average revenue estimate of $2.48 billion.

Quoting Management: In announcing today’s financial results, Joseph L. Hooley, State Street’s chairman, president and chief executive officer, said, “We continue to prioritize the return of capital to our shareholders. During the first quarter of 2013, we completed the final phase of our $1.8 billion common stock purchase program announced in March 2012 with the purchase of approximately $360 million of our common stock. In March 2013, State Street’s Board of Directors approved a $2.1 billion common stock purchase program following the Federal Reserve’s 2013 Comprehensive Capital Analysis and Review (CCAR) process, reflecting our continued strong capital position. We also increased our common stock dividend by $0.02 to $0.26 per share during the quarter.”

Key Stats (on next page)…

Revenue decreased 3.63% from $2.56 billion in the previous quarter. EPS decreased 13.51% from $1.11 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.12 to a profit $1.17. For the current year, the average estimate has moved up from a profit of $4.31 to a profit of $4.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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