State Street Earnings: Here’s Why Investors are Bidding Up Shares

State Street Corp. (NYSE:STT) delivered double-digit profit growth AND topped Wall Street’s revenue expectation. Additionally, the company stated it will trim 630 jobs to boost the bottom line for shareholders. Shares are up 4.72%.

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State Street Corp. Earnings Cheat Sheet

Results: Net income increased 22.8% to $468 million ($1 per diluted share) in the quarter versus a net gain of $381 million in the year-earlier quarter.

Revenue: Decreased 2.96% to $2.46 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: State Street Corp. reported adjusted net income of $1 per share. By that measure, the company met the mean analyst estimate of $1. It beat the average revenue estimate of $2.36 billion.

Quoting Management: “As we look ahead, we are encouraged by the recent market strength and early signs of client re-risking….

…We remain confident in the long-term growth prospects of our business and are focused on servicing clients, growing revenues organically, managing expenses prudently, and returning capital to shareholders,” Joseph L. Hooley, State Street`s Chairman, President and CEO stated.

Key Stats:

Revenue decreased 0.45% from $2.47 billion in the previous quarter. Net income decreased 22.7% from $674 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.93 to a profit $0.92. For the current year, the average estimate has moved down from a profit of $3.88 to a profit of $3.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)