State Street Reports $83 Million Profit (STT)

Boston, Massachusetts-based State Street Corporation STT released financial results on Wednesday morning. State Street Corporation reported that its 4th quarter earnings fell to $83 million, or 16 cents per share, down from $498 million, or $1 per share, a year earlier. Excluding special items, the company's earnings came in at 83 cents per share. Operating-basis earnings for the 4th quarter of 2010 was 87 cents per share, up from 71 cents per share a year earlier. State Street Corporation reported revenue of 2.04 billion, down 10% from $2.28 billion a year earlier. According to a survey of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 85 cents per share, on revenue of $2.14 billion. Chairman and chief executive officer Joseph L. Hooley said, “In the fourth quarter, we continued to experience favorable growth in servicing and management fees, and in addition, we saw some improvement in trading services revenue compared to the third quarter. We also maintained control over expenses, and on an operating basis in the fourth quarter we achieved 520 basis points of positive operating leverage compared to the fourth quarter of 2009.” State Street Corporation (STT) closed the previous trading day at $50.06 per share. Analysts covering the company's stock give it a consensus price target of $56.57 per share. State Street Corporation is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $20.2 trillion in assets under custody and administration and $1.9 trillion in assets under management at September 30, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide. Read more from Benzinga's Company news.