Bank of New York Mellon Earnings: Profit DIPS for Fourth Straight Quarter

S&P 500 (NYSE:SPY) component The Bank of New York Mellon Corporation (NYSE:BK) reported its results for the second quarter. The Bank of New York Mellon is a global financial services company offering various products and services for individuals and institutions. The main activities of the company and its subsidiaries include asset management, wealth management, and broker-dealer and advisory services.

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The Bank of New York Mellon Corporation Earnings Cheat Sheet

Results: Net income for the banks-major regional fell to $466 million (39 cents per share) vs. $735 million (59 cents per share) a year earlier. This is a decline of 36.6% from the year-earlier quarter.

Revenue: Fell 6% to $3.62 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Bank of New York Mellon Corporation fell short of the mean analyst estimate of 50 cents per share. It fell exactly in line with the average revenue estimate of $3.62 billion.

Quoting Management: “We continue to grow investment management and investment services fees reflecting the strength of our business model. We are delivering on our operational excellence initiatives, investing for future growth and positioning our businesses to deliver the full breadth of our global capabilities. Our strengthened capital positions us as a preferred counterparty, and provides us greater flexibility for ongoing investment while continuing to return capital to shareholders,” said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon. “Also in the second quarter, we were able to put significant litigation behind us with no material impact on our capital,” added Mr. Hassell.

Key Stats:

The company’s net income has fallen for the last three quarters. In the first quarter, net income fell 1% from the year earlier, while the figure fell 25.6% in the fourth quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 53 cents versus a mean estimate of net income of 52 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 58 cents a share to 56 cents over the last sixty days. The average estimate for the fiscal year is $2.16 per share, down from $2.27 ninety days ago.

Competitors to Watch: State Street Corporation, Northern Trust Corporation, SEI Investments Company, Morgan Stanley, Goldman Sachs Group, Inc., Bank of America Corp., Wells Fargo & Company, Citigroup Inc., United Western Bancorp, Inc., and JPMorgan Chase & Co.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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