State Street (STT) Misses Q2 EPS by 14c, Miss on Revenues
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State Street (NYSE: STT) reported Q2 EPS of $1.88, $0.14 worse than the analyst estimate of $2.02. Revenue for the quarter came in at $3.03 billion versus the consensus estimate of $3.07 billion.
- 2Q18 Results Include a $77 Million, or $0.17 Per Share, Repositioning Charge Related to Organizational Realignment
- 2Q18 Revenue of $3.0 Billion, up 8% Compared to 2Q17, Reflecting Strength in Both Fee Revenue and Net Interest Income
- Expenses Down Sequentially; Beacon to Deliver $200 Million in Savings in 2018, up from $150 Million
In announcing today’s financial results, Joseph L. Hooley, State Street’s Chairman and Chief Executive Officer, said, "Second-quarter and year-to-date 2018 results reflect strength across our asset servicing and asset management businesses as well as the benefit from higher net interest income. Importantly, year-to-date EPS growth of 30% compared to the first half of 2017 was supported by a 6% and 20% increase in servicing fees and management fees, respectively. Demand remains strong across our global client base as demonstrated by new servicing commitments announced in the first half of 2018 of $1.5 trillion."
Hooley added, "Through State Street Beacon, we have gained efficiencies across the organization, while delivering significant value and innovation to our clients. Building on the success of Beacon, we are now focused on achieving greater organizational effectiveness and streamlining to further advance the standardization and globalization of our business."
Hooley continued, "It continues to remain a priority to prudently manage expenses against the revenue environment and we remain on track to achieve our 2018 financial objectives."
Hooley concluded, "Building on our market-leading servicing capabilities, our announcement today of our agreement to acquire Charles River Development positions us to deliver the industry\'s first-ever front-to-middle-to-back office servicing platform. A comprehensive front to back solution coupled with enhanced data management provides State Street with the capabilities to further expand and deepen our client relationships and help solve some of their most pressing business challenges. The addition of Charles River Development's capabilities to State Street\'s existing product set provides another growth avenue for shareholders."
For earnings history and earnings-related data on State Street (STT) click here.
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