It's been a pretty great week for State Street Corporation (NYSE:STT) shareholders, with its shares surging 13% to US$85.34 in the week since its latest quarterly results. State Street reported US$3.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.15 beat expectations, being 6.1% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
NYSE:STT Earnings and Revenue Growth July 18th 2024
Taking into account the latest results, the consensus forecast from State Street's 13 analysts is for revenues of US$12.6b in 2024. This reflects a credible 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 40% to US$7.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$12.5b and earnings per share (EPS) of US$7.52 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$88.37, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on State Street, with the most bullish analyst valuing it at US$103 and the most bearish at US$73.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the State Street's past performance and to peers in the same industry. The analysts are definitely expecting State Street's growth to accelerate, with the forecast 10% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect State Street to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on State Street. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple State Street analysts - going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with State Street , and understanding it should be part of your investment process.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
State Street Corporation(NYSE:STT)株主にとっては、最新の四半期の結果を発表して以来の1週間で、株価が13%上昇して85.34ドルに達するなど、非常に良い週になりました。 State Streetは32億ドルの収益を報告し、アナリストの予測とほぼ同じでしたが、米国株式市場(EPS)2.15ドルの純利益は予想を上回り、アナリストの予想より6.1%高くなりました。アナリストは通常、各四半期の決算報告ごとに予測を更新し、その見方が変わったか、新しい懸念事項があるかどうかを見ることができます。読者が次の年のアナリスト最新(法定)決算後の予測を見ることが興味深いと考えました。
分析家は、株価ターゲットをUS$88.37で再確認し、ビジネスが期待どおりに実行されていることを示しています。株式の将来について考えるもう1つの方法があります。アナリストが提供した価格ターゲットの範囲を見ることです。広範な見積もりは、ビジネスの可能な結果について多様な見方が示唆される可能性があるためです。 State Streetについては、最も強気のアナリストが株価をUS$103で評価し、最も弱気なアナリストが株価をUS$73.00で評価しています。分析家が株式の将来について完全に一致していないことは明らかですが、見積もりの範囲は比較的狭く、結果がまったく予測できないわけではないことを示唆しています。
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。