State Street Corporation Set to Release Q4 Earnings Amid Positive Projections
With a market cap of $28.8 billion, Boston-based State Street Corporation (STT) stands as a prominent player in the financial sector, catering to institutional investors globally. The company offers a range of investment servicing, management, and data analytics solutions through its main banking subsidiary, State Street Bank. Investors await the release of its fiscal Q4 earnings results, scheduled for Friday, January 17, before market hours.
Analysts Forecast Earnings Growth
Leading up to the earnings announcement, analysts project that the firm will report a profit of $2.34 per share, representing a 14.7% increase from $2.04 per share during the same period last year. State Street has consistently outperformed Wall Street’s earnings expectations for the past four quarters, surpassing the consensus estimate by an impressive 8.7% in the most recent quarter.
Future Earnings Projections Look Promising
Looking ahead to fiscal 2024, analysts estimate that STT will achieve an EPS of $8.42, up 9.9% from $7.66 in fiscal 2023. Additionally, for fiscal 2025, EPS is expected to increase by 11.8% year-over-year, reaching $9.41.
Stock Performance Over the Year
In the past 52 weeks, STT’s shares have risen 26.7%, outperforming the broader S&P 500 Index ($SPX), which saw a 23.3% gain. However, it has underperformed compared to the Financial Select Sector SPDR Fund’s (XLF) 28.5% increase during the same time frame.
Third Quarter Earnings Report Highlights
Following a robust Q3 2024 earnings report released on October 15, shares of State Street Corporation experienced a slight uptick. The report revealed an adjusted EPS of $2.26, exceeding estimates, and an impressive 80.8% increase year-over-year. Revenues reached $3.3 billion, driven by strong fee growth and greater net interest income. The company also reported a remarkable 17% year-over-year growth in assets under custody or administration, totaling $46.8 trillion, alongside returning $674 million to shareholders through buybacks and dividends. Nevertheless, the modest share price increase was tempered by concerns regarding elevated operating expenses and credit loss provisions.
Analysts Hold a Moderately Positive Outlook
The consensus rating among analysts for State Street Corporation stock leans towards optimism, reflecting a “Moderate Buy” overall. Out of 16 analysts covering the stock, the ratings include eight “Strong Buys,” one “Moderate Buy,” five “Holds,” one “Moderate Sell,” and one “Strong Sell.” This outlook appears slightly more favorable than three months prior when there were seven “Strong Buy” ratings.
Currently, STT is trading below the average analyst price target of $104.60.
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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
