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State Street (STT) Q4 Earnings & Revenue Improve Y/Y

Have you been eager to see how State Street CorporationSTT performed in Q4 in comparison with the market expectations? Let's quickly scan through the key facts from this MA -based popular company's earnings release this morning:

Earnings Improve

State Street came out with operating earnings of $1.48 per share, which was up from $1.21 in the prior year quarter. The Zacks Consensus Estimate was $1.34. The earnings in the reported quarter included certain notable items.

Rise in revenues primarily drove the earnings growth.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for State Street depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last 7 days.

Also, State Street has a decent earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in all four trailing quarters, with an average beat of 9.23%.

State Street Corporation Price and EPS Surprise

State Street Corporation Price and EPS Surprise | State Street Corporation Quote

Revenue Came In Lower than Expected

State Street posted revenues (on GAAP basis) of $2.53 billion, which was below the Zacks Consensus Estimate of $2.77 billion.

Key Q4 Statistics

  • Net inflows of $16 billion in asset management business
  • New asset servicing mandates totaled $180 billion
  • Repurchased approximately $325 million worth of shares
  • State Street Beacon delivered $175 million in estimated annual pre-tax savings in 2016.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for State Street. 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.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Check back later for our full write up on this State Street earnings 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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