- State Street‘s 1Q adjusted EPS stood at $1.69, beating the estimated figure of $1.50.
- Its EPS, however, came down to $1.37 as compared to $1.52 in the same quarter of the previous year.
- The revenue was reported at $3.14 billion, indicating a growth of 1.2% year on year and surpassing the estimated total of $3.06 billion.
- Fee revenue increased by 3.7% y/y to $2.42 billion, slightly over the predicted amount of $2.4 billion.
- Net interest income took a dip of 6.5% y/y to $716 million but still managed to outdo the estimated $659.8 million.
- The FTE net interest margin was slightly down at 1.13% in comparison to 1.31% in the prior year.
- The provision for credit losses decreased by 39% y/y to $27 million, which is slightly more than the estimated $25.8 million.
- Net flows were negative by $9 billion, a y/y increase of 65%, but fell short of the estimated positive figure of $17.56 billion.
- Assets under management were reported at $4.34 trillion, indicating a quarterly growth of 5% and exceeding the estimate of $4.25 trillion.
- The assets under custody/administration also increased by 5% q/q to reach $43.91 trillion, going past the estimated sum of $42.91 trillion.
- The Common equity Tier 1 ratio stood at 11.1%, matching the predicted ratio but lower than the prior year’s 12.1%.
- Return on average equity was at 7.7% as against the 9.3% reported in the same period of the previous year.
- The company’s shares received 7 ‘buy’ recommendations, 9 ‘hold’, and 3 ‘sell’.
State Street on Smartkarma
On Smartkarma, independent analysts such as Baptista Research share insights on companies like State Street. In their report titled “State Street Corporation: What Is Their Biggest Competitive Advantage? – Major Drivers,” Baptista Research delves into State Street‘s recent performance. Despite quarterly revenues falling below analyst expectations, State Street saw positive market trends at the start of the quarter, which later turned negative. The report highlights State Street‘s Alpha gaining momentum, securing new mandates in the third quarter, including its first mandate for private markets.
A look at State Street Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysing State Street Corporation’s long-term outlook using Smartkarma Smart Scores reveals a positive overall assessment. With strong scores in Value and Dividend at 4 each, State Street appears to offer attractive investment opportunities for those seeking both value and income. Moreover, its Growth score of 3 indicates potential for moderate expansion in the future, adding another layer of attractiveness for investors looking for potential growth prospects. However, the company’s Resilience score of 2 suggests that it may face some challenges in terms of stability and risk management, while its Momentum score of 3 indicates a moderate level of market momentum.
State Street Corporation services institutional investors globally, providing a range of financial products and services including custody, accounting, securities lending, and investment advisory services. The company’s solid scores across various factors bode well for its long-term performance, offering a mix of value, dividends, and growth potential to investors. However, investors should be mindful of the resilience and momentum aspects as they navigate their investment decisions in State Street.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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