Analyst Note| Rajiv Bhatia |
Wide-moat-rated State Street reported decent fourth-quarter results. Revenue of $2.92 billion exceeded the FactSet consensus of $2.82 billion by 4%. The firm reported adjusted EPS of $1.69, which beat the consensus of $1.56. Notable items excluded from adjusted EPS totaled $145 million pretax and consisted of $82 million of severance, $51 million in real estate rationalization, and $12 million in acquisition and restructuring. As a result, GAAP EPS was $1.39 during the quarter. We will be tweaking our model, but we do not expect a large change in our fair value estimate.