/Bank%20Of%20New%20York%20Mellon%20Corp%20location%20sign-by%20JHVEPhoto%20via%20Shutterstock.jpg)
The Bank of New York Mellon Corporation (BK), headquartered in New York, is a financial services company founded in 1784. With a market cap of $44.8 billion, BNY Mellon offers services for creating, trading, holding, managing, servicing, distributing, and restructuring investments and serves a global client base, including financial institutions, corporations, government agencies, endowments, foundations, and high-net-worth individuals. The company is expected to announce its fiscal Q1 earnings for 2024 before the market opens on Friday, July 12.
Ahead of the event, analysts expect The Bank of New York Mellon to report a profit of $1.41 per share, a 2.2% jump from $1.38 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s bottom-line estimates in its recent quarterly reports.
Its adjusted earnings of $1.29 per share for the last reported quarter surged 14.2% year over year, beating the consensus estimate by 8.4%. This success can be credited to its robust revenue growth fueled by higher net interest income and fee revenues despite challenges like increased expenses affecting net income.
For fiscal 2024, analysts expect The Bank of New York Mellon to report an EPS of $5.45, up 7.9% from $5.05 in fiscal 2023. Fiscal 2025 EPS is expected to grow 10.3% annually to $6.01.
BK stock has rallied 15.5% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 14.5% gain while edging past the Financial Select Sector SPDR Fund (XLF) 9.6% return over the same time frame.
After The Bank of New York Mellon’s solid Q1 earnings on April 16, shares jumped up for six consecutive trading sessions. The company reported revenue of $4.5 billion - its highest-ever quarterly revenue on an ongoing operating basis, fueled by rising asset values boosting investment services fees. The bank's assets under custody grew amid market optimism, but profits were impacted by reduced interest income and lower volatility in foreign exchange markets.
Recently, the banking company announced its intention to increase its quarterly cash dividend on its common shares by 12% from $0.42 to $0.47 per share, commencing as early as the third quarter of 2024. Moreover, on June 26, the Federal Reserve's bank stress test results highlighted the resilience and strength of BNY's business model and capital position, and its shares popped 1.5% in the following trading session.
The consensus opinion on The Bank of New York Mellon stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, and the remaining seven suggest a “Hold” rating. The average analyst price target for BNY Mellon is $63.67, indicating a potential upside of 6.3% 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.
