- State Street‘s first-quarter earnings per share (EPS) were $2.04, surpassing both the previous year’s $1.37 and the estimated $2.01.
- Total revenue reached $3.28 billion, marking a 4.7% increase year-over-year, but slightly below the expected $3.32 billion.
- Fee revenue increased by 6.1% year-over-year to $2.57 billion, just short of the $2.59 billion forecast.
- Net interest income came in at $714 million, a slight decrease of 0.3% year-over-year, and below the projected $722.6 million.
- Net flows experienced a significant downturn to -$13 billion, a 44% drop from the previous year, against an anticipated gain of $88.1 billion.
- The full tax-equivalent net interest margin was 1%, down from the previous year’s 1.13% and below the 1.04% estimate.
- Assets under management totaled $4.67 trillion, a 1.1% decline quarter-over-quarter, missing the expected $4.76 trillion.
- Assets under custody/administration grew by 0.4% quarter-over-quarter to $46.73 trillion, nearly meeting the estimated $46.78 trillion.
- Provision for credit losses fell by 56% year-over-year to $12 million, aligning closely with the projected $12.8 million.
- The Common Equity Tier 1 ratio was 11%, slightly down from the previous year’s 11.1% and matching the estimate.
- Return on average equity improved to 10.6% from 7.7% the year prior.
- Analyst recommendations include 10 buy ratings, 7 hold ratings, and 1 sell rating.
A look at State Street Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
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
State Street Corporation, a financial services company catering to institutional investors globally, displays a positive long-term outlook according to Smartkarma Smart Scores. With solid scores in value and dividend factors, State Street is positioned favorably for investors seeking stable returns and income. The company’s emphasis on delivering value and providing attractive dividend yields contributes to its overall positive outlook in these aspects.
Although State Street scores slightly lower in growth, resilience, and momentum factors, its core focus on value and dividends can offer a steady investment opportunity for those prioritizing stability and income generation. As State Street Corporation continues to serve institutional investors with a range of financial products and services, its strong performance in key areas bodes well for its long-term prospects in the financial market.
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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