Analysts predict State Street’s Q4 earnings will rise, with key metrics showing promising growth.
Boston: Analysts are buzzing about State Street Corporation’s upcoming earnings report. They expect the company to announce earnings of $2.42 per share, which is an 18.6% jump from last year. Revenue is also looking good, projected at $3.31 billion, up 8.7% from the same quarter last year.
In the last month, analysts have raised their earnings estimates by 2.4%. This shows they’re feeling more optimistic about State Street’s performance. It’s always a good idea to keep an eye on these revisions before earnings are released, as they can hint at how investors might react.
While many folks look at the overall earnings and revenue numbers, digging into specific metrics can give a clearer picture. For instance, analysts think the Tier 1 Leverage Ratio will hit 5.3%, slightly down from 5.5% last year. They also expect the average balance of interest-earning assets to be around $265.70 billion, up from $232.23 billion a year ago.
Other key metrics include a Tier 1 capital ratio of 13.4% and assets under management projected at $4,785.94 billion, which is a nice increase from $4,128 billion last year. The total capital ratio is expected to be 14.4%, down from 15.2% last year, while assets under custody are forecasted to be $40,312.27 billion, down from $41,810 billion.
Analysts are also looking at net interest income, which they expect to be around $734.49 million, up from $678 million last year. Total fee revenue is projected at $2.58 billion, compared to $2.37 billion last year. They predict management fees will reach $530.90 million, up from $479 million last year.
In the past month, State Street’s shares have dipped by 6.3%, while the S&P 500 composite has only dropped 3.5%. With a Zacks Rank of #3, it seems STT will likely follow the market’s lead in the near future.
