STT a rare Financial that beats, $1.15 eps vs. .94 eps estimate, Shorts being Squeezed
October 16, 2007
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STT a rare Financial that beats, $1.15 eps vs. .94 eps estimate, Shorts being Squeezed
State Street 3Q Earnings Rise 29 Percent
Tuesday October 16, 8:03 am ET
State Street 3rd-Quarter Earnings Rise on Growing Service Fees and Trading Services Revenue BOSTON (AP) -- Financial services firm State Street Corp. said Tuesday third-quarter net income increased 29 percent from the year-ago quarter due to increasing revenue from servicing fees and trading services.
For the three months ended Sept. 30, earnings climbed to $358 million, or 91 cents per share, from $278 million, or 83 cents per share, during the same quarter a year ago.
Operating income, which excludes merger and integration costs from State Street's acquisition of Investors Financial Services Corp. was $449 million, or $1.15 per share.
Analysts polled by Thomson Financial, on average, forecast earnings of 94 cents per share. Analysts do not always include one-time charges in their earnings forecasts.
State Street's servicing fees increased 37 percent to $937 million from $685 million during the third quarter of 2006. The increase came as State Street added new customers from its acquisition of Investors Financial Services and increased business from new and existing customers.
Trading services revenue, which includes foreign exchange trading and brokerage fees, increased 87 percent to $320 million. Increasing exchange trading volume helped boost trading services revenue.
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