The earnings call highlighted significant achievements including record EPS, robust revenue and fee growth, and strong performance in various segments. However, there were challenges related to increased expenses, continued deposit rotation, and the announcement of the CFO's departure. The overall sentiment reflects a strong financial performance with some operational challenges.

Company Guidance

During State Street Corporation's Q3 2024 earnings call, the company provided optimistic guidance, reflecting strong financial performance and strategic momentum. The quarter saw record earnings per share (EPS) of $2.26, marking a 17% year-over-year growth excluding notable items, and robust total revenue growth of 9%. The return on equity (ROE) was also strong at 12%. State Street reported $466 billion in new assets under custody and administration (AUC/A) wins, including $84 million in new servicing fee revenue, attributed largely to its Alpha platform. The company experienced 10% year-on-year growth in management fees and a 3% increase in servicing fees. Additionally, the balance sheet remained strong with net interest income (NII) up 16% year-over-year, driven by higher investment yields and loan growth despite continued deposit rotation. The firm returned over $670 million of capital to shareholders, including $450 million in share repurchases, and plans for a healthy capital return in Q4, expecting a full-year payout ratio in the 80-90% range. State Street's outlook for the remainder of the year is positive, anticipating total fee revenue to be at or slightly above the high end of the 4-5% growth range, with expectations for NII to increase by 4-5%, and expenses to rise by approximately 3.5%, resulting in both positive fee and total operating leverage for 2024.

Record-Breaking Quarterly EPS

Third quarter EPS reached $2.26, marking the highest on record, with a year-over-year earnings growth of 17% excluding notable items.

Robust Revenue and Fee Growth

Fee and total revenue growth were strong at 7% and 9% year-over-year, respectively, driving margin expansion.

Investment Services Success

Generated strong AUC/A wins of $466 billion, with $84 million in new servicing fee revenue wins, the highest quarter this year.

Global Advisors' Positive Net Flows

Global Advisors saw record quarterly net flows of $100 billion and quarter-end assets under management reached $4.7 trillion.

Strong Performance in Markets Business

FX trading revenue increased 15% year-on-year, and securities finance revenues increased 13% year-on-year.

Improved Full Year Outlook

Total fee revenue and NII expected to be at or above previous guidance, with expenses expected to rise due to higher revenue-related costs.

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State Street (STT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

STT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 20, 2018	2018 (Q2)	- / 2.05	1.67	22.75% (+0.38)	―	―
Oct 19, 2018	2018 (Q3)	- / 1.87	1.71	9.36% (+0.16)	―	―
Jan 18, 2019	2018 (Q4)	- / 1.68	1.83	-8.20% (-0.15)	―	―
Apr 23, 2019	2019 (Q1)	- / 1.24	1.62	-23.46% (-0.38)	―	―
Jul 19, 2019	2019 (Q2)	- / 1.45	2.05	-29.27% (-0.60)	―	―
Oct 18, 2019	2019 (Q3)	- / 1.51	1.87	-19.25% (-0.36)	―	―
Jan 17, 2020	2019 (Q4)	- / 1.98	1.68	17.86% (+0.30)	―	―
Apr 17, 2020	2020 (Q1)	- / 1.67	1.24	34.68% (+0.43)	―	―
Jul 17, 2020	2020 (Q2)	- / 1.88	1.45	29.66% (+0.43)	―	―
Oct 16, 2020	2020 (Q3)	- / 1.45	1.51	-3.97% (-0.06)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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STT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 15, 2024	$90.22	$91.11	+0.99%
Jul 16, 2024	$77.66	$83.44	+7.44%
Apr 12, 2024	$72.03	$73.85	+2.53%
Jan 19, 2024	$71.77	$73.27	+2.09%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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