Analysts on Wall Street project that State Street Corporation (STT) will announce quarterly earnings of $1.98 per share in its forthcoming report, representing an increase of 17.2% year over year. Revenues are projected to reach $3.3 billion, increasing 5.2% from the same quarter last year.
The current level reflects a downward revision of 2.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific State Street metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts forecast 'Basel III Advanced Approaches - Tier 1 Leverage Ratio' to reach 5.5%. The estimate compares to the year-ago value of 5.4%.
Based on the collective assessment of analysts, 'Average balance - Total interest-earning assets' should arrive at $274.35 billion. Compared to the current estimate, the company reported $254.33 billion in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Basel III Standardized Approach - Tier 1 capital ratio' of 13.6%. The estimate compares to the year-ago value of 13.8%.
Analysts predict that the 'Assets under Management (AUM)' will reach $4,713.90 billion. The estimate is in contrast to the year-ago figure of $4,336 billion.
Analysts expect 'Basel III Standardized Approach - Total capital ratio' to come in at 14.6%. The estimate is in contrast to the year-ago figure of 14.9%.
The consensus among analysts is that 'Assets under Custody and/or Administration (AUC/A)' will reach $39,950.61 billion. Compared to the current estimate, the company reported $43,912 billion in the same quarter of the previous year.
The average prediction of analysts places 'Net Interest Income' at $729.81 million. The estimate compares to the year-ago value of $716 million.
It is projected by analysts that the 'Total fee revenue' will reach $2.57 billion. Compared to the current estimate, the company reported $2.42 billion in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Net Interest Income - fully taxable-equivalent basis' will likely reach $730.08 million. The estimate compares to the year-ago value of $717 million.
According to the collective judgment of analysts, 'Software and processing fees' should come in at $220.93 million. The estimate compares to the year-ago value of $207 million.
Analysts' assessment points toward 'Other fee revenue' reaching $62.57 million. Compared to the current estimate, the company reported $50 million in the same quarter of the previous year.
The consensus estimate for 'Management fees' stands at $549.66 million. The estimate is in contrast to the year-ago figure of $510 million.
View all Key Company Metrics for State Street here>>>
State Street shares have witnessed a change of -8.5% in the past month, in contrast to the Zacks S&P 500 composite's -3.6% move. With a Zacks Rank #3 (Hold), STT is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
State Street Corporation (STT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
