State Street Corporation
STT: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $19.00 | Pvxyl | Fqfsfckj |
State Street Earnings: Net Interest Income Impresses
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State Street ended the year on a high note with revenue and adjusted EPS topping the FactSet consensus estimates by 3% and 11%, respectively. We attribute the firm’s revenue beat to better-than-expected net interest income and note that the firm’s net interest income outlook for 2024 was better than our model. Relative to fee income, net interest income tends to be much more volatile and difficult to predict. As we update our model, we expect to increase our fair value estimate by a single-digit percentage.