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Bank of New York Mellon Third Quarter Earnings Preview
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Bank of New York Mellon (NYSE:BK) will announce its third quarter earnings on Wednesday, October 17, 2012.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: How To Decode A Company's Earnings Reports
What to Expect: Bank of New York is expected to report 54 cents per share, up 1.9% from a year ago when the company reported earnings of 53 cents per share.
The consensus estimate is down from three months ago when it was 56 cents. Analysts are projecting earnings of $2.04 per share for the fiscal year.
Bank of New York is expected to report revenue of $3.6 billion for the quarter, down by 6.4% from last year's figure of $3.85 billion. Bank of New York is expected to report revenue of $14.54 billion for the fiscal year.
Company Performance: Over the last three quarters, revenue has slipped. In the most recent quarter, it fell 6% to $3.71 billion. Previously, revenue slipped 0.6% in the first quarter and 6.6% in the fourth quarter of the last fiscal year.
BK is in line with the industry average with a P/E ratio of 12.5. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Profit With The Power Of Price-To-Earnings
Over the past quarter, the stock price has increased from $21.76 on July 16, 2012 to $23.39. Bank of New York's stock price is currently in the middle of a rising streak. The stock has risen 75 cents per share since September 26, 2012.
The Competition: 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. Nine of 18 analysts rate Bank of New York a hold. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the regional banks industry is Wells (WFC). Analysts are less optimistic about Bank of New York than about Wells. Twenty out of 26 analysts rate the latter a buy compared to seven of 18 for the former.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: How To Decode A Company's Earnings Reports
What to Expect: Bank of New York is expected to report 54 cents per share, up 1.9% from a year ago when the company reported earnings of 53 cents per share.
The consensus estimate is down from three months ago when it was 56 cents. Analysts are projecting earnings of $2.04 per share for the fiscal year.
Bank of New York is expected to report revenue of $3.6 billion for the quarter, down by 6.4% from last year's figure of $3.85 billion. Bank of New York is expected to report revenue of $14.54 billion for the fiscal year.
Company Performance: Over the last three quarters, revenue has slipped. In the most recent quarter, it fell 6% to $3.71 billion. Previously, revenue slipped 0.6% in the first quarter and 6.6% in the fourth quarter of the last fiscal year.
Over the past quarter, the stock price has increased from $21.76 on July 16, 2012 to $23.39. Bank of New York's stock price is currently in the middle of a rising streak. The stock has risen 75 cents per share since September 26, 2012.
The Competition: 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. Nine of 18 analysts rate Bank of New York a hold. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the regional banks industry is Wells (WFC). Analysts are less optimistic about Bank of New York than about Wells. Twenty out of 26 analysts rate the latter a buy compared to seven of 18 for the former.
by
Investopedia Staff
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