STT Earnings Prediction
The chart below shows how STT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STT sees a -1.51% change in stock price 10 days leading up to the earnings, and a +2.07% change 10 days following the report. On the earnings day itself, the stock moves by -0.34%. This data can give you a slight idea of what to expect for the next quarter's release.
STT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.26B
29.80%
3.22%
Gross Margin
--
--
--
Operating Margin
17.60%
40.91%
-1.73%
Net Margin
13.89%
33.30%
-0.50%
EPS
2.26
80.80%
5.12%
No Data Available
STT Earnings Analysis
State Street Corporation Corporation (STT.N) Earnings Conference Call
Positive
EPS Increase Quarter-over-Quarter: Our third quarter EPS was $2.26 as compared to $1.25 in the year-ago period.
Earnings and ROE Growth: We delivered strong earnings growth of 17% year-over-year with record quarterly EPS, while 3Q ROE was a strong 12%.
Strong Revenue and Earnings Growth: We achieved robust fee and total revenue growth and generated positive fee and total operating leverage in 3Q, which, when combined with increased capital return quarter-on-quarter, drove strong earnings growth for our shareholders on both the year-over-year and sequential basis.
Strong AUC/A Revenue Wins: We generated strong AUC/A wins of $466 billion, with new servicing fee revenue wins of $84 million, the highest quarter this year.
Alpha Mandate Success: We reported two new Alpha mandates in 3Q, with Alpha accounting for the vast majority of our AUC/A wins this quarter, as State Street was awarded as significant mandate by a premier large global asset manager.
Negative
Dynamic Market Conditions: Operating environment in the third quarter was dynamic, with global equity and fixed income markets moving notably higher, but the world's investors faced a number of risk-off events in 3Q, including fears of a U.S. recession, the unwinding of the carry trade, concerns over tech valuations and continued geopolitical tensions.
Record AUC/A and AUM Growth: The third quarter period-end AUC/A and AUM increased to record levels, supported by both equity and bond market tailwinds as well as strong client flows.
Record Quarterly EPS Growth: The third quarter EPS was $2.26 as compared to $1.25 in the year-ago period, excluding notable items, we delivered strong earnings growth of 17% year-over-year with record quarterly EPS, while 3Q ROE was a strong 12%.
Expense Increase Analysis: The third quarter expenses increased by 6% year-over-year, primarily driven by higher performance-based compensation and revenue-related costs, which were worth about half of the increase, as well as important investments in products, technology and infrastructure.
Servicing Fees Increase: The third quarter servicing fees increased 3% year-over-year, as higher average market levels and new business were partially offset by pricing headwinds and previously disclosed client transition and lower client activity.
STT FAQs
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STT Earning Call Sentiment
State Street Corporation (STT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
STT.N
0.57%Positive
The earnings call presents a strong financial performance with significant EPS and revenue growth, high ROE, and record AUM levels. The Q&A reveals some uncertainties, particularly regarding the hybrid product with Apollo and the durability of profitability improvements. However, the company's strong capital return plans, including increased dividends and share repurchases, alongside optimistic guidance, outweigh these concerns. Despite some vague responses, the overall sentiment remains positive, indicating a likely stock price increase between 2% to 8%.
