State Street Corporation Prepares for Q1 2025 Earnings Report

With a market cap of $23.9 billion, State Street Corporation (STT) stands as a significant global financial holding company. It delivers a comprehensive portfolio of investment servicing and management solutions tailored to institutional investors through its subsidiaries. These services include custody, accounting, fund administration, securities finance, trading services, and the State Street Alpha platform, catering to mutual funds, retirement plans, insurance companies, and other large-scale investors.

Anticipated Earnings Release

Boston, Massachusetts-based State Street is set to announce its fiscal Q1 2025 earnings results on Thursday, April 17, before the market opens. Analysts forecast that STT will report a profit of $1.98 per share, reflecting a 17.2% increase from $1.69 per share reported in the same quarter last year. Notably, the company has consistently surpassed Wall Street’s earnings estimates over the last four quarters. In Q4 2024, State Street exceeded the consensus earnings per share (EPS) estimate by 7.4%.

Financial Projections for Fiscal 2025 and Beyond

For the full fiscal year 2025, analysts predict STT will achieve EPS of $9.60, which indicates a 10.7% growth from $8.67 in fiscal 2024. Looking ahead, EPS is expected to rise to $10.69 in fiscal 2026, representing an 11.4% year-over-year increase.

Stock Performance Overview

STT Stock has increased by 7.1% over the last 52 weeks, outperforming the S&P 500 Index’s ($SPX) 3.6% gain. Nevertheless, it has underperformed compared to the Financial Select Sector SPDR Fund’s (XLF) 14.5% return during the same time frame.

Q4 2024 Results and Market Reactions

Despite delivering a strong performance in Q4 2024, where it reported adjusted EPS of $2.60 and revenues amounting to $3.4 billion, STT shares fell by 2.9% on January 17. This decline was attributed to a cautious outlook for 2025. The company’s forecast includes expectations for net interest income (NII) to remain flat and fee income growth to slow to just 3% – 5%, a sharp decline compared to 2024’s NII growth of 5.9% and fee income increase of 6.3%. Moreover, adjusted expenses climbed by 8.2% to $2.4 billion, exceeding previous projections. The decline in the Common Equity Tier 1 ratio and lower-than-anticipated asset balances further fueled negative market sentiment.

Analyst Sentiment on State Street Stock

Currently, analysts hold a cautiously optimistic view on State Street Stock, assigning it a “Moderate Buy” rating overall. Among 18 analysts covering the stock, there are eight “Strong Buys,” two “Moderate Buys,” seven “Holds,” and one “Moderate Sell.” Presently, STT is trading below the average analyst price target of $111.47.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.