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With a market cap of $23.9 billion, State Street Corporation (STT) is a global financial holding company that provides a wide range of investment servicing and management solutions to institutional investors through its subsidiaries. Its offerings include custody, accounting, fund administration, securities finance, trading services, and the State Street Alpha platform, serving mutual funds, retirement plans, insurance firms, and other large-scale investors.
The Boston, Massachusetts-based is expected to announce its fiscal Q1 2025 earnings results before the market opens on Thursday, Apr. 17. Ahead of this event, analysts expect STT to report a profit of $1.98 per share, up 17.2% from $1.69 per share in the previous year's quarter. It has surpassed Wall Street's bottom-line estimates in the past four quarters. In Q4 2024, State Street exceeded the consensus EPS estimate by 7.4%.
For fiscal 2025, analysts project STT to achieve EPS of $9.60, marking a 10.7% increase from $8.67 in fiscal 2024. EPS is further expected to rise 11.4% year-over-year to $10.69 in fiscal 2026.
STT stock has risen 7.1% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 3.6% gain. However, the stock has lagged behind the Financial Select Sector SPDR Fund's (XLF) 14.5% return over the same period.
Despite beating Q4 2024 estimates with adjusted EPS of $2.60 and revenues of $3.4 billion, STT shares fell 2.9% on Jan. 17 due to a cautious 2025 outlook. The company expects net interest income (NII) to remain flat and fee income to grow just 3% - 5%, a slowdown from 2024’s NII growth of 5.9% and fee income rise of 6.3%. Adjusted expenses increased 8.2% to $2.4 billion, exceeding the estimate. Additionally, a decline in the Common Equity Tier 1 ratio and lower-than-expected asset balances contributed to the bearish sentiment.
Analysts' consensus rating on State Street stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 18 analysts covering the stock, opinions include eight "Strong Buys," two "Moderate Buys," seven "Holds," and one "Moderate Sell." As of writing, STT is trading below the average analyst price target of $111.47.
