State Street Corp. (STT) said it will report a second-quarter
profit well above analysts' forecasts as the company has seen its
revenue trends improve.
The institutional money-management firm also said it has booked
a $251 million charge, which includes a $330 million contribution
to trust funds it manages.
The company said that on an operating basis, which typically
exclude charges as well as investment gains and losses, it expects
to earn 93 cents a share and post $2.2 billion in revenue. Analysts
polled by Thomson Reuters most recently forecast earnings of 72
cents on $2.21 billion in revenue.
State Street President and Chief Executive Joseph Hooley said
the company's results were helped by "momentum in our servicing fee
revenue as well as improvement in trading-services fee revenue." He
also noted that they are consistent with the full-year outlook the
company gave several months ago.
The second-quarter results are due for release July 20. In
April, State Street said its first-quarter profit climbed 4% on
one-time gains and strong fee revenue.
Shares were up 0.8% in light premarket trading to $33.62. The
stock through Tuesday was down 23% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com