State Street (NYSE:STT) shares are on the rise today after the financial services major reported robust numbers for the first quarter.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
STT Exceeds Expectations
During the quarter, revenue ticked up by 1.3% year-over-year to $3.14 billion, outpacing expectations by $80 million. EPS of $1.69 came in better than estimates by $0.20. On a year-over-year basis, State Street’s total fee revenue increased by 4% to $2.42 billion. However, its net interest income (NII) declined by 7% to $716 million.
State Street’s Impressive Asset Growth
Its return on average common equity (ROE) contracted to 7.7% from 9.3% in the year-ago period. At the same time, STT’s AUM (Assets Under Management) grew at a healthy 20% year-over-year to $4.34 trillion. Similarly, the company’s AUC/A (Assets Under Custody or Administration) jumped by 17% to $43.9 trillion, due to an influx of new business wins and client flows. During the quarter, STT clocked an impressive $474 billion in new servicing wins under AUC/A.
What Is the Price Target for State Street?
Today’s price gains add to the nearly 17% rise in STT’s share price over the past six months. Overall, the Street has a Hold consensus rating on the stock. Additionally, the average STT price target of $85.75 points to a 16% potential upside in the stock. However, analysts’ views on State Street could see a revision following today’s earnings report.
Read full Disclosure