State Street 2Q Net Up 50%, 2008 Revenue View Boosted
By Daniel at 15 July, 2008, 8:04 am
State Street 2Q Net Up 50%, 2008 Revenue View Boosted
Last Update: 7/15/2008 7:56:57 AM
Analysts surveyed: 15
Thomson Reuters EPS estimates can reflect either net income, operating income or
funds from operations.
The company’s earnings figure is on a diluted basis. Thomson Reuters assumes
earnings estimates from analysts are on a diluted basis.
Click here to go to Dow Jones NewsPlus, a web front page of today’s most
important business and market news, analysis and commentary:
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DOW JONES NEWSWIRES
State Street Corp. (STT) reported a 50% increase in second-quarter net income and
sees full-year revenue exceeding expectations as the money manager’s latest
results were aided by acquisitions.
But the company is also seeing increased new business wins, said Chief Executive
Ronald Logue, resulting from cross-selling. That is helping to boost its
securities finance and trading operations.
State Street reported net income of $548 million, or $1.35 a share, up from $366
million, or $1.07 per share in the year prior.
Revenue rose 39% to $2.67 billion. Excluding the July 2007 purchase of Investors
Financial Services, revenue would have increased 27%.
The mean estimates of analysts polled by Thompson Reuters were for earnings of
$1.36 a share on revenue of $2.6 billion.
The firm’s return on equity, an important measure of profitability for financial
firms, fell to 18.6% from 19.2%.
Revenue from servicing fees was $977 million, up 28%, while total fees jumped 31%
to $2.01 billion.
The company, which provides large financial institutions safekeeping for stocks
and assets, last month followed an industry trend to shore up its own status and
began to raise $2.8 billion in a common stock offering. Shares have been
slumping, falling below $60 for the first time in almost two years. The company
shares closed at $55.70 on Monday, its lowest level since July 2006, and there
was no premarket trading.
State Street - the parent of State Street Global Advisors, known for its mutual
funds and exchange-traded funds - sees 2008 per-share earnings growth approaching
the high end of the company’s 10% to 15% range and said revenue growth should
exceed its 14% to 17% target.
-By David Benoit, Dow Jones Newswires; 201-938-2472; david.benoit@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today’s most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=9kELB4HUXOiD3Tf5%2BJpKQA%3D%3D. You can use this
link on the day this article is published and the following day.
(END) Dow Jones Newswires
July 15, 2008 07:56 ET (11:56 GMT)
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