State Street Reports a Decent Third Quarter as Interest Rate Tailwinds Offset Market Headwinds

State Street reported a decent third quarter with results mostly in line with expectations. Revenue of $2.99 billion and adjusted EPS of $1.82 came in just a bit above the FactSet consensus of $2.97 billion and $1.78, respectively. As expected, rising interest rates are helping the firm's net interest income, while falling asset values are weighing on asset-based fees. State Street is also resuming share repurchases and expects to buy back $1 billion of its shares in the fourth quarter. We will maintain our wide moat rating and fair value estimate of $92 per share.