State Street stock drops after net interest income and revenue fall short

State Street Corp. (STT) stock was down by 4.5% after it reported a better-than-expected second-quarter profit but fell short of its revenue and net interest income marks. State Street said its earnings for the three months ended June 30 rose 2% to $763 million, or $2.17 a share, from $747 million, or $1.91 a share, in the year-ago period. Analysts were looking for earnings of $2.10 a share, according to estimates compiled by FactSet. State Street's second-quarter revenue increased to $3.11 billion from $2.95 billion, but missed the analyst forecast of $3.14 billion. Net Interest income fell by 10% from the first quarter to $691 million but increased by 18% over the year-ago level. Jefferies analyst Ken Usdin said the company's net interest income came in at the lower end of its forecast for a sequential decline of 5% to 10% and missed the Wall Street consensus estimate by 1%. State Street is sitting out gains among other financial stocks as the Financial Select Sector SPDR ETF (XLF) rose by 0.2%. Meanwhile, Northern Trust Corp. (NTRS) and Bank of New York Mellon Corp. (BK) were both down by about 2.7%.

-Steve Gelsi

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07-14-23 1008ET

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