State Street Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component State Street (NYSE:STT) will unveil its latest earnings tomorrow, Friday, January 18, 2013. State Street provides a range of investment management strategies, investment management advisory services and other financial services.

State Street Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1 per share, a rise of 7.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.02. Between one and three months ago, the average estimate moved down. It also has dropped from $1.01 during the last month. Analysts are projecting profit to rise by 3.2% compared to last year’s $3.85.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 99 cents per share against a mean estimate of profit of 96 cents, and the quarter before, the company exceeded forecasts by 2 cents with net income of $1.01 versus a mean estimate of profit of 99 cents.

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A Look Back: In the third quarter, profit rose 21.4% to $674 million ($1.36 a share) from $555 million ($1.10 a share) the year earlier, exceeding analyst expectations. Revenue fell 5.4% to $2.47 billion from $2.61 billion.

Here’s how State Street traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

STT

Stock Price Performance: Between November 14, 2012 and January 14, 2013, the stock price had risen $7.03 (16%), from $43.98 to $51.01. The stock price saw one of its best stretches over the last year between June 4, 2012 and June 12, 2012, when shares rose for seven straight days, increasing 9.9% (+$3.90) over that span. It saw one of its worst periods between September 13, 2012 and September 20, 2012 when shares fell for six straight days, dropping 1.5% (-66 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.36 billion in revenue this quarter, a rise of 3.1% from the year-ago quarter. Analysts are forecasting total revenue of $9.55 billion for the year, a rise of 0.5% from last year’s revenue of $9.5 billion.

Key Stats:

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the first quarter and second quarter, profit rose in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 5.6% in the second quarter and dropped again in the third quarter.

Analyst Ratings: With 15 analysts rating the stock a buy, two rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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