Analyst Note| Rajiv Bhatia, CFA |
State Street reported decent second-quarter financial results, with revenue of $3.03 billion and adjusted EPS of $1.88, beating the FactSet consensus of $2.94 billion and $1.79, respectively. The firm’s guidance is encouraging, as full-year fee revenue outlook came in above our expectations. In addition, net interest income is expected to be $460 million-$470 million in the third and fourth quarter, roughly flat from the $467 million in the second quarter, which to us indicates that net interest income may be close to finding a bottom. We expect to modestly raise our $77 fair value estimate and will maintain our wide moat rating.