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With a market cap of $56.1 billion, The Bank of New York Mellon Corporation (BK) is a leading global financial services company. It provides financial products and services to institutions, corporations, governments, and high-net-worth individuals worldwide. The New York-based company is expected to unveil its fiscal Q4 earnings results before the market opens on Wednesday, Jan. 15.
Before the event, analysts anticipated the investment bank to report a profit of $1.52 per share, up 18.8% from $1.28 per share in the same quarter last year. The company has surpassed Wall Street's earnings projections in the past four quarters. BK exceeded the consensus estimate by a margin of 7.8% in the most recent quarter.
For fiscal 2024, analysts anticipate BK to report EPS of $5.84, up 15.6% from $5.05 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 13.2% year-over-year to $6.61.
Over the past 52 weeks, BK's shares have returned 47.6%, outperforming the broader S&P 500 Index's ($SPX) 23.3% gain and the Financial Select Sector SPDR Fund's (XLF) 28.5% increase over the same period.
Shares of BNY Mellon rose marginally on Oct. 17 due to its Q3 2024 earnings results surpassing expectations, with adjusted EPS of $1.52 and revenue of $4.7 billion. The rise in fee revenues and net interest income (NII), along with strong growth in assets under custody/administration (AUC/A) and assets under management (AUM), supported the positive sentiment. Specifically, AUC/A increased by 14% year-over-year to $52.1 trillion, and AUM rose 17.7% to $2.1 trillion, benefiting from market rallies and client inflows. Despite these gains, higher non-interest expenses and credit provisions moderated investor enthusiasm, leading to a modest rise in the stock.
Analysts' consensus rating on BNY Mellon stock is cautiously optimistic, with a "Moderate Buy" overall rating. Out of 15 analysts covering the stock, opinions include 10 "Strong Buy," one "Moderate Buy," and four "Holds." As of writing, BK is trading below the average analyst price target of $85.50.
