State Street Corporation (NYSE:STT), a financial holding company, provides various financial products and services to institutional investors worldwide. The company's Investment Servicing business line provides products and services, including custody, product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loan and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk, and compliance analytics.
It is scheduled to report its Q2 2012 results on July 17, 2012, before the market opens. In this article, I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.
The stock has a market capitalization of $21.34B and is currently trading at $43.67 with a 52-week range of $29.86-$47.20. The stock performance year to date: 9.53%. It is currently trading above 20, 50 and 200 SMA.
- Trailing P/E: 11.77
- Forward P/E: 9.75
- Price/Sales: 2.21
- Price/Book: 1.09
- PEG Ratio: 1.03
- Total Debt: 32.66B
- Annual dividend yield: 1.90%
- Return on Equity: 9.54%
- Return on Assets: 1.04%
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last two quarters. In the last quarter, it reported $0.84 EPS, failing to meet analyst estimates of $0.86.
The consensus EPS estimate is $0.98 based on 19 analysts' estimates, up from $0.96 a year ago. Revenue estimates are $2.43B, just below $2.47B a year ago. The median target price by analysts for the stock is $48.00.
Average recommendation: Overweight
- On June 28, 2012, State Street Corporation announced that it has been appointed by Emory University to provide risk analytics services for its $5 billion endowment. State Street will perform various analytical measures for the endowment in support of the risk management process, including data management and risk measurement and analysis.
- On March 19, 2012, State Street Corporation announced the launch of the State Street Fund InsightsSM Valuation Toolkit, the first in a suite of solutions designed to provide timely industry insights for fund managers and directors and help them better manage data.
- On March 14, 2012, State Street Corporation announced a quarterly dividend of $0.24 per share of common stock, payable April 16, 2012, to stockholders of record as of April 2, 2012, and representing an increase of $0.06 per share, or 33%, from the $0.18 per share of common stock dividend paid on January 17, 2012.
- On January 20, 2012, Reuters reported that State Street Corporation, JPMorgan Chase & Co. and Ameriprise Financial, Inc. are among the finalists in the bidding process for Deutsche Bank AG's asset management division.
State Street Corporation operates in the Regional - Northeast Banks industry. The company could be compared to The Bank of New York Mellon Corporation (NYSE:BK), JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), and Northern Trust Corporation (NASDAQ:NTRS). Below is the table comparison of the most important ratios between these companies and the industry.
Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.
Click to enlargeClick to enlarge
Competitors' Latest Development
- On July 6, 2012, The Bank of New York Mellon Corporation announced that on July 5, 2012 it entered into a settlement agreement related to a previously disclosed class action lawsuit pending in federal court in Oklahoma and initiated by CompSource Oklahoma concerning losses in connection with the investment of securities lending collateral in Sigma Finance Inc. (Sigma).
- On July 6, 2012, Mint reported that Morgan Stanley is in talks to acquire a stake in Lanco Infratech Ltd's thermal power business at a time when India's electricity producers are struggling with fuel shortages and cost increases.
- On July 6, 2012, Reuters reported that a U.S. judge has ordered JPMorgan Chase & Co. to explain why the court should not force the bank to turn over 25 internal emails demanded as part of an investigation into whether it manipulated electricity markets in California and the Midwest.
- On July 4, 2012, Reuters reported that U.S. energy regulators have subpoenaed JPMorgan Chase & Co. to produce 25 internal emails as part of an investigation into whether the bank manipulated electricity markets in California and the Midwest.
- On July 3, 2012, Reuters reported that JPMorgan Chase & Co.'s One Equity Partners, the Company's private investment arm, will buy technology services firm M*Modal Inc. for about $1.1 billion in cash.
- On June 26, 2012, Dow Jones reported that according to the Economic Times newspaper Morgan Stanley's Morgan Stanley Infrastructure Partners has agreed to buy a majority stake in privately-held Continuum Wind Energy for about INR12 billion ($210.1 million).
- On June 25, 2012, Integra Mining Ltd. announced that JPMorgan Chase & Co. and its affiliates have ceased to be shareholders of the Company effective April 9, 2012.
- On June 22, 2012, Reuters reported that Ratings agency Moody's downgraded 15 banks on Thursday, lowering credit ratings by one to three notches to reflect the risk of losses they face from volatile capital markets activities, but banks criticized the move as backward looking.
- On June 21, 2012, Reuters reported that JPMorgan Chase & Co.'s asset management business has created a new unit, which will oversee $100 billion in assets under management and incorporate teams from the company's investment management and wealth management divisions.
- On June 19, 2012, Reuters reported that The Bank of New York Mellon Corporation will compensate Prudential Financial, Inc after the insurer complained about the pricing of its foreign exchange transactions, according to a recent court filing by the U.S. Justice Department.
- On June 19, 2012, Reuters reported that Japan has excluded Nomura Holdings, Inc. from working on the government's sale of roughly $6 billion worth of JAPAN TOBACCO INC. shares.
- On June 11, 2012, REN Redes Energeticas Nacionais SGPS SA (NYSE:REN) announced that on June 11, 2012 JP Morgan Securities Ltd, a subsidiary of JPMorgan Chase & Co, acquired 28,131,422 ordinary shares class A, corresponding to 5.272% of REN's share capital .
- On June 7, 2012, Reuters reported that according to CNBC television, Morgan Stanley is considering selling a stake in its vaunted commodities trading division. The investment bank has been exploring a partial sale since at least last year and has talked to several parties, including private equity firm Blackstone Group LP, CNBC television reported on June 6, 2012, citing sources.
- On June 6, 2012, Reuters reported that U.S. bank regulators will review whether JPMorgan Chase & Co. executives should have to give back compensation due to the bank's failed hedging strategy that has produced at least $2 billion in losses.
- On June 1, 2012, Reuters reported that Blackstone Group LP and Morgan Stanley have agreed to pay AUD640 million ($621 million) to acquire a AUD1.9 billion portfolio of distressed property loans in Australia from a unit of Lloyds Banking Group PLC's Banking Group.
- On May 31, 2012, Morgan Stanley announced that it has advised Citigroup Inc. (NYSE: C) that on June 1, 2012, it intends to give notice that it is exercising its right to purchase an additional 14% of Morgan Stanley Smith Barney Holdings LLC (MSSB).
- On May 25, 2012, The law firm of Lieff Cabraser Heimann & Bernstein, LLP is investigating the wrongdoing alleged in shareholder actions brought against JPMorgan Chase & Co. and/or officers and directors arising from the Company's recent multi-billion dollar trading loss.
- On May 23, 2012, Reuters reported that Massachusetts Secretary of Commonwealth William Galvin has issued a subpoena to Morgan Stanley over an analyst's discussions with investors on Facebook.
- On May 23, 2012, Reuters reported that the head of the U.S. Securities and Exchange Commission told lawmakers on Tuesday that her agency is probing JPMorgan Chase & Co.'s financial reporting and emphasized that big banks are required to publicly disclose changes to the models they use to measure risk.
- On May 22, 2012, Reuters reported that Credit Suisse Group AG had won the latest auction of mortgage-linked collateralized debt obligations from The New York Fed's Maiden Lane III portfolio of assets assumed from American International Group, Inc. during the insurer's bailout in 2008.
- On May 22, 2012, Reuters reported that the U.S. government has filed three lawsuits against a group of large banks over losses on soured mortgage debt purchased by two small Illinois banks that failed in 2009.
- On May 21, 2012, Reuters reported that JPMorgan Chase & Co.'s CEO Jamie Dimon took another step in the wake of $2 billion loss, or more, on derivatives by announcing on Monday that the Company will quit spending capital on stock buybacks.
- On May 19, 2012, Reuters reported that The Commodity Futures Trading Commission (CFTC) has opened an investigation into possible wrongdoing at JPMorgan Chase & Co in connection with the bank's multi-billion-dollar trading loss, a source familiar with the probe told Reuters.
- On May 18, 2012, Law Offices of Howard G. Smith announced that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of JPMorgan Chase & Co. between April 13, 2012, and May 11, 2012, inclusive (the Class Period).
- On May 17, 2012, Reuters reported that JPMorgan Chase & Co., CEO Jamie Dimon took another step that showed humility and caution in the wake of a stunning $2 billion loss, or more, on derivatives by announcing on Monday that the Company will quit spending capital on stock buybacks.
- On May 16, 2012, Dow Jones reported that Morgan Stanley has lowered its stake in Koninklijke KPN N.V. to 4.93% from 10.01%, according to the Dutch financial regulator Autoriteit Financiele Markten.
- On May 16, 2012, Reuters reported that The FBI has opened an inquiry into the multibillion-dollar trading losses at JPMorgan Chase, stepping up pressure on the bank after key U.S. agencies said they were looking into high-risk trades that first drew regulators' attention last month.
- On May 11, 2012, JPMorgan Chase & Co. announced that it has suffered $2 billion or more in trading losses. A May 11, 2012 Wall Street Journal article indicates the 'losses stemmed from wagers gone wrong in the bank's Chief Investment Office' and involved losses in derivative positions.
- On May 11, 2012, Levi & Korsinsky announced that it is investigating potential claims on behalf of purchasers of JPMorgan Chase & Co. (JPMorgan or the Company)securities concerning possible breaches of fiduciary duty.
- On May 10, 2012, Reuters reported that the New York Federal Reserve sold all its TRIAXX collateralized debt obligations from a portfolio of assets that was used in the government bailout of insurer American International Group, Inc. to Bank of America Corp's Merrill Lynch, following a competitive bid process with eight other Wall Street firms.
- On May 7, 2012, Rompres reported that five new United States companies will be listed on the Alternative Trading System of the Bucharest Stock Exchange International Department, starting on May 10, 2012.
- On May 1, 2012, Reuters reported that Citigroup Inc, Morgan Stanley, UBS AG and Wells Fargo & Co on Tuesday agreed to pay more than $9.1 million in fines and restitution for selling leveraged and inverse exchange-traded funds 'without reasonable supervision'.
- On April 25, 2012, JPMorgan Chase & Co. announced that Freepoint Commodities LLC, has entered into a definitive agreement to acquire J.P. Morgan Metals & Concentrates LLC, merchant of physical base metal concentrates and copper cathodes.
- On April 23, 2012, Reuters reported that Indonesian regulators have approved Morgan Stanley's brokerage license in Indonesia, after the bank bought a local brokerage seat from Tiga Pilar Sekuritas.
- On April 23, 2012, Dow Jones reported that Citigroup Inc, Credit Suisse Group AG and Goldman Sachs Group Inc are banding together to outbid five other Wall Street dealers for some $7.5 billion in complex commercial mortgage-backed securities taken on by the Federal Reserve Bank of New York during the 2008 bailout of American International Group.
- On April 19, 2012, Reuters reported that a federal judge on Wednesday dismissed claims against Goldman Sachs Group Inc, JPMorgan Chase & Co. and 40 other defendants that they helped mislead investors in General Electric Co's $12.2 billion stock offering in 2008.
- On April 4, 2012, Reuters reported that according to the Commodity Futures Trading Commission (CFTC) JPMorgan Chase & Co will pay $20 million to settle charges that it unlawfully handled customer segregated funds at Lehman Brothers Holdings Inc.
- On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of Morgan Stanley will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker MSBR11B.
- On March 21, 2012, Reuters reported that Morgan Stanley's asia private equity arm has invested $300 million in China's Tianhe Chemicals Group, the two companies said on March 21, 2012 a deal that will help the Company to expand into the U.S. and European markets.
- On March 20, 2012, Reuters reported that JPMorgan Chase & Co. agreed to pay $150 million to settle a lawsuit by pension funds and other investors accusing the U.S. bank of imprudently investing their cash in a risky debt vehicle that collapsed in 2008.
- On March 15, 2012, JPMorgan Chase & Co. announced that it declared a dividend on the outstanding shares of the corporation's Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I in the amount of $395.00 per share (which is equivalent to $39.50 per related Depositary Share).
- On March 15, 2012, Prairie Downs Metals Limited announced that JPMorgan Chase & Co. and its affiliates have ceased to be a substantial holder in the Company as of January 25, 2011.
- On March 9, 2012, The Bank of New York Mellon Corporation announced that its intention to create a new Global Delivery Centre (GDC) based in Wroclaw, Poland as part of an ongoing strategy to optimise its infrastructure and support its global business plans.
- On March 8, 2012, JPMorgan Chase & Co and AirPlus Internationalannounced the formation of a strategic partnership to help multinational organizations optimize processes and strengthen control of their corporate card and travel expense management programs.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.