The Bank of New York Mellon Earnings: Here’s Why Investors are Selling Shares

The Bank of New York Mellon Corporation (NYSE:BK) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.17%.

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The Bank of New York Mellon Corporation Earnings Cheat Sheet

Results: Net income increased 23.17% to $622 million (53 cents per diluted share) in the quarter versus a net gain of $505 million in the year-earlier quarter.

Revenue: Decreased 2.04% to $3.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Bank of New York Mellon Corporation reported adjusted net income of 53 cents per share. By that measure, the company met the mean analyst estimate of $0.53. It beat the average revenue estimate of $3.6 billion.

Quoting Management: “Our balance sheet and capital ratios strengthened in 2012 even after giving effect to the repurchase of approximately $1.1 billion of our common shares in 2012,” said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon.

Key Stats:

Revenue decreased 5.07% from $3.8 billion in the previous quarter. Net income decreased 14.21% from $725 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 $0.55 to a profit $0.54. For the current year, the average estimate has moved up from a profit of $2.05 to a profit of $2.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)