Core Viewpoint - State Street (STT) is expected to report an increase in revenues and earnings for the third quarter of 2024, with earnings per share estimated at $2.08, reflecting a 7.8% year-over-year rise, and sales projected at $3.18 billion, indicating an 18.1% growth compared to the previous year [1][2]. Financial Performance Expectations - The company has a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in the last four quarters with an average surprise of 10.73% [2]. - The Zacks Consensus Estimate for net interest revenues (NIR) is $694.5 million, which represents a sequential decline of 5.6%, while the projected NIR on a fully taxable-equivalent basis is $668.9 million [5][4]. - The average interest-earning assets for the quarter are estimated at $253.4 billion, reflecting a 3.2% decrease from the previous quarter [4]. Revenue Breakdown - Fee revenues are anticipated to benefit from increased volatility and volume in foreign exchange markets, with the consensus estimate for FX trading services income at $350.6 million, suggesting a 4.3% rise from the last quarter [6]. - Management fees are expected to reach $526.4 million, indicating a 3% sequential increase, while servicing fees are projected at $1.27 billion, reflecting a 2.4% growth [7]. - Total fee revenues are estimated at $2.5 billion, indicating a 1.7% growth from the prior quarter, with the company projecting slightly higher at $2.51 billion [8]. Expense Considerations - Operating expenses are expected to rise due to higher information systems and communication costs, inflationary pressures, and strategic investments [8][9]. - Total adjusted non-interest expenses are anticipated to be $2.27 billion [9]. Earnings Prediction Insights - The Earnings ESP for State Street is currently at 0.00%, and the company holds a Zacks Rank of 2 (Buy), indicating a mixed outlook for beating the consensus estimate this quarter [10][11].
Fee Revenues to Aid State Street Q3 Earnings, NIR & Expenses to Hurt