Financial services giant State Street (NYSE: STT) will be reporting earnings this Friday before market hours. Here’s what to look for.
State Street beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $3.45 billion, up 8.1% year on year. It was a strong quarter for the company, with and a decent beat of analysts’ revenue estimates.
Is State Street a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting State Street’s revenue to grow 6.4% year on year to $3.47 billion, slowing from the 21.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. State Street has missed Wall Street’s revenue estimates twice over the last two years.
Looking at State Street’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 18.5%, beating analysts’ expectations by 9.2%, and Jefferies reported revenues up 21.6%, topping estimates by 8.4%. Jefferies traded down 1.9% following the results.
Read our full analysis of Morgan Stanley’s results here and Jefferies’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. State Street is up 5.8% during the same time and is heading into earnings with an average analyst price target of $128.63 (compared to the current share price of $116.95).
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