Financial services giant State Street (NYSE: STT) will be announcing earnings results this Friday morning. Here’s what to expect.
State Street beat analysts’ revenue expectations last quarter, reporting revenues of $3.67 billion, up 7.5% year on year. It was a strong quarter for the company, with and a beat of analysts’ EPS estimates.
Is State Street a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting State Street’s revenue to grow 11.9% year on year, improving from the 4.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. State Street rarely misses Wall Street’s revenue estimates.
Looking at State Street’s peers in the capital markets segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 4%, and Goldman Sachs reported revenues up 14.4%, topping estimates by 1%. Goldman Sachs’s stock price was unchanged following the results.
Read our full analysis of Morgan Stanley’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 9.5% on average over the last month. State Street is up 17.6% during the same time and is heading into earnings with an average analyst price target of $143.75 (compared to the current share price of $143).
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