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BNY Mellon (BK) Beats on Q1 Earnings as Expenses Fall

Have you been eager to see how The Bank of New York Mellon CorporationBK performed in Q1 in comparison with the market expectations? Let's quickly scan through the key facts from this New York-based financial services company's earnings release this morning:

An Earnings Beat

BNY Mellon came out with adjusted earnings of 74 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents. Moreover, the figure came above the year-ago quarter figure of 67 cents per share.

Lower expenses were partly offset by a slight fall in revenues and higher provisions.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for BNY Mellon depicted a neutral stance prior to the earnings release as the Zacks Consensus Estimate remained stable over the last 30 days.

BNY Mellon has a decent earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in all the prior four quarters, with an average beat of 10.18% in the trailing four quarters.

Revenues

BNY Mellon posted total revenues of $3.74 billion, which came slightly above the Zacks Consensus Estimate of $3.72 billion. However, it compared unfavorably with the year-ago figure of $3.76 billion.

Key Statistics:

  • Generated around 250 basis points of positive operating leverage year-over-year on an adjusted basis

  • Repurchased 16.2 million common shares for $577 million

  • Operating margin improved to 31%

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BNY Mellon. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

Check back later for our full write up on this BNY Mellon earnings report!

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BANK OF NY MELL (BK): Free Stock Analysis Report

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


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

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