Earnings Preview: Bank of New York Mellon

Bank of New York Mellon (BK) is expected to report Q3 earnings before market open Thursday, Oct. 16, with a conference call scheduled for 8:00 am.

Guidance

Analysts are looking for EPS of 70c on revenue of $3.69B. The consensus range for EPS is 63c to 74c, while the consensus range for revenue is $3.27B to $3.92B, according to First Call.

Analyst Views

The U.S. Treasury will invest $3B in preferred stock and warrants in Bank of New York Mellon, the bank said yesterday. Investors will likely try to determine if that investment will meet all of the bank's capital requirements over the near term. Meanwhile, the bank will also be the main custodian of the Treasury's TARP program, Bloomberg reported yesterday.

Investors will want to confirm that report, and find out how much the bank will be paid for its role. In mid-September, the company refuted rumors that it had been one of the largest lenders to Lehman Brothers. The bank clarified that it was only a trustee for certain bond offerings by the firm.