Bank of New York Mellon Earnings Preview

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Investors hope Bank of New York Mellon (NYS: BK) will top analyst estimates once again after beating predictions by $0.03 in the previous quarter. The company will unveil its latest earnings on Wednesday. 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.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on this stock with 12 analysts rating it as a buy and only one rating it as a sell. Analysts like Bank of New York Mellon better than competitor Morgan Stanley overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $3.7 billion in revenue this quarter. That would represent a rise of 7.9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.53 per share. Estimates range from $0.46 to $0.57.

What our community says:
CAPS All-Stars are solidly behind the stock with 86.2% assigning it an outperform rating. The community at large backs the All-Stars with 85.2% awarding it a rating of outperform. Fools have embraced Bank of New York Mellon and haven't been shy with their opinions lately, logging 197 posts in the past 30 days. Bank of New York Mellon's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Bank of New York Mellon's income has fallen year over year by an average of 21.8% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Net Margin

18.6%

16.4%

17.2%

17.4%

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At the time this article was published

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