The company repurchased $560 million in common shares during the third quarter, and has about $1.0 billion in shares authorized for repurchase through the first quarter of 2014.
State Street's shares closed at $69.81 Monday, returning 50% this year. The shares trade for 13.3 times the consensus 2014 EPS estimate of $13.27.
The shares were down nearly 3% in morning trading Tuesday, to $67.82.
The potential for negative earnings estimate revisions for subsequent quarters "appears modest with more help coming from efficiency initiatives/capital return and a more stable spread income run rate for 4Q," according to Jefferies analyst Ken Usdin, who rates State Street a "buy," with an $82 price target.
In a client note Tuesday morning, Usdin wrote that he suspected "light activity levels over the summer weighed on servicing, while asset management likely incurred higher money market fee waivers and possibly lower performance fees."
Interested in more on State Street? See TheStreet Ratings' report card for this stock.
-- Written by Philip van Doorn in Jupiter, Fla.