The Bank of New York Mellon 2Q Results: Postgame Scorecard
The Bank of New York Mellon (NYSE:BK) saw its profit decline in the second quarter.
Earnings and Revenue The company posted revenues in line with analyst predictions, though the company's EPS came up short of expectations. The company reported EPS of 39 cents a share versus the 50 cents a share estimate and revenues of $3.62 billion versus the $3.62 billion estimate. The estimates of 16 analysts ranged from profit of 32 cents to profit of 57 cents.
The company's net income for the quarter was $466 million. According to the reported number, this is down 36.6% from last year's levels. Revenue fell 6% from $3.95 billion in the same period last year.
Company Fundamental Trends Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 1% in the first quarter and 25.6% in the fourth quarter of the last fiscal year.
History Against Expectations The company missed estimates last quarter after surpassing the mark the quarter before. It reported net income of 53 cents versus a mean estimate of net income of 52 cents per share.
Official Comment: "We continue to grow investment management and investment services fees reflecting the strength of our business model. We are delivering on our operational excellence initiatives, investing for future growth and positioning our businesses to deliver the full breadth of our global capabilities. Our strengthened capital positions us as a preferred counterparty, and provides us greater flexibility for ongoing investment while continuing to return capital to shareholders," said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon. "Also in the second quarter, we were able to put significant litigation behind us with no material impact on our capital," added Mr. Hassell.
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.