State Street (NYSE:STT) saw its profit fall in the most recent quarter.
Earnings and Revenue The company's revenues met Wall Street's expectations, though the company's EPS fell short of predictions. The company reported EPS of 98 cents a share versus the 99 cents a share estimate and revenues of $2.43 billion versus the $2.42 billion estimate. The estimates of 17 analysts ranged from profit of 94 cents to profit of $1.06.
The company's net income for the quarter was $490 million. According to the reported number, this is down 4.5% from last year's levels. Revenue fell 9.5% from $2.68 billion in the same period last year.
Company Fundamental Trends This marks the second quarter in a row that the company's net income has fallen after profits tumbled 9.3% in the first quarter. The company saw falling revenues last quarter after rising 0.3% to $2.56 billion the quarter before.
History Against Expectations The company has now missed analyst estimates for the past three quarters in a row. It missed the mark by 2 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.
Official Comment: Joseph L. Hooley, State Street's chairman, president and chief executive officer, said, "During the second quarter our business performed well in a challenging economic environment which included increasing weakness in international markets. Compared to the first quarter of 2012, we achieved positive operating leverage due primarily to the reduction in compensation expenses, solid overall expense management and continued business momentum fueled by the impact of new business installations in our core asset servicing and asset management businesses."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.