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Boston-based State Street Corporation (STT) provides various financial products and services to institutional investors worldwide. With a market cap of $26.7 billion, State Street serves asset managers, retirement plan providers, insurance companies, foundations, and more. The financial services firm is expected to announce its fiscal Q3 earnings for 2024 before the market opens on Tuesday, October 15.
Ahead of the event, analysts expect State Street to report a profit of $2.10 per share, up 8.8% from $1.93 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimate over the last four quarters. Its EPS of $2.15 for the last reported quarter beat the Wall Street estimates by 7%.
Looking ahead to fiscal 2024, analysts expect State Street to report an EPS of $8.17, up 6.7% from $7.66 in fiscal 2023. Its fiscal 2025 EPS is projected to grow 10.2% annually to $9.
STT stock is up 14.2% in 2024, underperforming the S&P 500 Index’s ($SPX) 20.8% returns and S&P 500 Financials Sector SPDR’s (XLF) 20.5% gains over the same time frame.
Despite underperforming the broader market in 2024, STT shares rose 2.6% on Sept. 16 after the company announced new deposits with Leader Bank (Massachusetts) and Local Bank (Oklahoma), both minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs). This is part of State Street's $100 million program to provide low-cost, stable funding to underserved communities.
Additionally, shares of State Street surged 7.5% following the release of its better-than-expected Q2 earnings report on Jul. 16.
The consensus opinion on State Street stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, eight give a “Strong Buy” rating, six are playing it safe with a “Hold,” one suggests a “Moderate Sell,” and the remaining two advise a “Strong Sell” rating.
The average analyst target price for STT is $91.97, indicating a potential upside of 4% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
