The Bank of New York Mellon Earnings Cheat Sheet: Sees Profit Move Up

S&P 500 (NYSE:SPY) component The Bank of New York Mellon Corporation (NYSE:BK) reported its results for the third quarter. The Bank of New York Mellon is a global financial services company offering various products and services for individuals and institutions. The main activities of the company and its subsidiaries include asset management, wealth management, and broker-dealer and advisory services.

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The Bank of New York Mellon Earnings Cheat Sheet for the Third Quarter

Results: Net income for the financial services company rose to $651 million (53 cents per share) vs. $622 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 4.7% from the year earlier quarter.

Revenue: Revenue rose 8% to $3.69 billion from the year earlier.

Actual vs. Wall St. Expectations: BK fell in line with the mean analyst estimate of 53 cents per share. Analysts were expecting revenue of $3.7 billion.

Quoting Management: “Year-over-year, we achieved revenue and earnings growth as we benefited from new business wins, net long-term asset flows and increased deposits,” said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon. “We also delivered positive operating leverage despite higher legal and severance costs, and generated a 22 percent return on tangible common equity for the quarter.” “In a challenging environment, our employees are doing an outstanding job providing our clients with the highest levels of service, winning new business, maximizing efficiency, and mitigating risk. We will continue to invest in our businesses to support our clients and the communities we serve while keeping a sharp focus on near-term earnings performance,” added Mr. Hassell.

Key Stats:

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 59 cents versus a mean estimate of net income of 56 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 63 cents a share to 56 cents over the last ninety days. The average estimate for the fiscal year is $2.20 per share, down from $2.31 ninety days ago.

Competitors to Watch: State Street Corporation (NYSE:STT), Northern Trust Corporation (NASDAQ:NTRS), SEI Investments Company (NASDAQ:SEIC), Morgan Stanley (NYSE:MS), Goldman Sachs Group, Inc. (NYSE:GS), Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), Citigroup Inc. (NYSE:C), United Western Bancorp, Inc. (NASDAQ:UWBK), and JPMorgan Chase & Co. (NYSE:JPM).

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(Source: Xignite Financials)