Bank of New York MellonShares of Bank of New York Mellon have returned 17% this year. The shares trade for 11.7 times the consensus 2014 EPS estimate of $2.54. The consensus 2013 EPS estimate is $2.29. The company is scheduled to announce its third-quarter results on Oct. 16, with analysts on average estimating net income of $673 million, or 58 cents a share, declining from $818 million, or 71 cents a share, the previous quarter, and $720 million, or 61 cents a share, a year earlier. Analysts expect a significant decline in trading revenue for large-cap banks, as investors were shy during the months leading up to the Federal Open Market Committee's meeting in September, when the committee left the Federal Reserve's "QE3" policy unchanged, with monthly long-term bond purchases of $85 billion. In his third-quarter earnings preview for trust banks, Jefferies analyst Ken Usdin on Oct. 3 wrote "There is little chance of offsetting the weaker revenues with cost controls given several expense headwinds: the annual merit increase, a rebound in the "other" line and less help from the efficiency plan." Usdin rates Bank of New York Mellon a "hold," with a $34 price target. BK data by YCharts
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