Post-Earnings Analysis - State Street

LONDON, February 9, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on State Street Corp. (NYSE: STT). On January 23, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=State%20Street&d=09-Feb-2015&s=STT to read our free earnings review on State Street Corporation (State Street). During FY14, the company's GAAP total revenue and GAAP earnings per common (EPS) share increased 4.2% Y-o-Y and 1.5% Y-o-Y, respectively. Chairman and CEO of State Street, Joseph L. Hooley, said that the company's fourth-quarter and full-year 2014 results reflect strength across its asset servicing and asset management businesses. Despite the low interest rate environment in 2014, State Street's revenue experienced solid growth compared to 2013 from both asset servicing and asset management, he added. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=State%20Street&d=09-Feb-2015&s=STT

Earnings Overview 

During Q4 FY14, State Street reported GAAP total revenue of $2.63 billion compared to $2.46 billion in Q4 FY13. The company's Q4 FY14 GAAP total revenues missed Bloomberg analysts' forecast of $2.68 billion. Further, State Street's Q4 FY14 GAAP net interest revenue came in at $574 million compared to $585 million in Q4 FY13. During the reported quarter, the company provided GAAP return on average common shareholders' equity (ROE) of 10.4% compared to 10.9% in the Q4 FY13. Free research on STT can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=State%20Street&d=09-Feb-2015&s=STT

In Q4 FY14, State Street non GAAP net interest margin decreased to 1.04% from 1.30% in Q4 FY13. The company's GAAP net income available to common shareholders stood at $525 million, or $1.24 per common share, in Q4 FY14 compared to $545 million, or $1.22 per common share, in Q4 FY13. Analysts from Bloomberg had expected GAAP net income available to common shareholders of $545 million, or $1.29 per common share, in Q4 FY14.

During FY14, State Street's GAAP total revenues stood at $10.30 billion compared to $9.88 billion in FY13. The company's GAAP total revenue during FY14 missed Bloomberg analysts' forecast of $10.58 billion. State Street's GAAP expenses increased 7.9% Y-o-Y to $7.76 billion in FY14. Moreover, the company's ROE decreased to 10.1% in FY14 from 10.5% in the FY13.

In FY14, State Street's GAAP EPS improved to $4.69 from $4.62 reported in FY13. Analysts from Bloomberg had expected GAAP EPS of $4.74, in FY14. Furthermore, the company's non-GAAP EPS grew 12.1% in FY14 to $5.09 from $4.54 in FY13. Sign up and read the free analyst's notes on STT at:

http://get.Investor-Edge.com/pdf/?c=State%20Street&d=09-Feb-2015&s=STT

Mr. Hooley informed that State Street has recently submitted its 2015 capital plan for review to the Federal Reserve and continue to emphasize the return of capital to shareholders through dividends and its common stock purchase program.

During Q4 FY14, State Street repurchased approximately $410 million of common stock at an average price of $73.71 per share. Additionally, in FY14, the company repurchased approximately 23.7 million shares of its common stock for $1.65 billion and at an average price of $69.48 per share. Furthermore, the company has approximately $470 million remaining at end of FY14 under its $1.7 billion common stock purchase program of March 2014, which extends through March 31, 2015.

As of December 31, 2014, State Street has $28.19 trillion assets under custody and administration as compared to $27.43 trillion at the end of December 31, 2013. Additionally, the company reported assets under management of $2.45 trillion as of December 31, 2014 compared to $2.35 trillion as of December 31, 2013. Furthermore, State Street's Basel III common equity Tier 1 ratio under advanced approach was calculated at 12.5%, as of December 31, 2014. Visit Investor-Edge and access the latest research on STT at:

http://get.Investor-Edge.com/pdf/?c=State%20Street&d=09-Feb-2015&s=STT

Stock Performance 

On the day of the earnings release, January 23, 2015, State Street's stock plummeted 6.08% to end the session at $72.40. Since then, the stock has moved both ways with gains outperforming losses. On the last close, Friday, February 06, 2015, the company's shares finished 1.91% higher at $76.12, after vacillating between $75.25 and $76.90. A total of 3.31 million shares were traded which was above its three months average volume of 2.35 million shares. Over the previous three trading sessions and over the last one month, the company's shares have advanced 2.01% and 0.75%, respectively. However, the stock has fallen by 2.17% in the past three months. Shares in State Street are trading above their 200-day moving average of $71.51. Furthermore, the stock traded at a PE ratio of 14.80 and has a Relative Strength Index (RSI) of 55.05.

Sneak Peek to Corporate Insider Trading 

In the last one month, State Street has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on STT is available at:

http://get.Investor-Edge.com/pdf/?c=State%20Street&d=09-Feb-2015&s=STT

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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