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BNY Mellon (BK) Beats on Q3 Earnings as Expenses Decline

Zacks Equity Research

Have you been eager to see how The Bank of New York Mellon Corporation BK performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based financial services company’s earnings release this morning:

Earnings Beat

BNY Mellon came out with earnings of $1.07 per share, beating the Zacks Consensus Estimate of 99 cents. The figure was up 1% from the prior year quarter.

Results benefited from lower expenses and growth in AUM.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for BNY Mellon depicted a neutral trend prior to the earnings release. The Zacks Consensus Estimate of 99 cents remained unchanged over the last 30 days.

BNY Mellon has an impressive earnings surprise history. The company delivered positive surprises in three of the trailing four quarters, with an average beat of 3.7%.

The Bank of New York Mellon Corporation Price and EPS Surprise

The Bank of New York Mellon Corporation Price and EPS Surprise

The Bank of New York Mellon Corporation price-eps-surprise | The Bank of New York Mellon Corporation Quote

Revenues Lower-than-Expected

BNY Mellon posted total revenues (GAAP basis) (excluding income from consolidated investment management funds) of $3.86 billion, which lagged the Zacks Consensus Estimate of $3.90 billion.

Key Statistics

  • Provision for credit losses was a benefit of $16 million
  • Assets under custody and/or administration grew 4% year over year
  • Repurchased 21.3 million common shares for $981 million during the quarter

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BNY Mellon. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this BNY Mellon earnings report!

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