Story updated at 10 a.m. to reflect market activity.
State Street fell -0.1% to $70.05 in morning trading.
The analyst firm also lowered its EPPS estimates for the company. The lower numbers are driven by lower interest rates and reduced volatility according to Barclays analysts.
Separately, TheStreet Ratings team rates STATE STREET CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate STATE STREET CORP (STT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- STT's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 1623.00% to $1,947.00 million when compared to the same quarter last year. In addition, STATE STREET CORP has also vastly surpassed the industry average cash flow growth rate of -105.01%.
- The gross profit margin for STATE STREET CORP is currently very high, coming in at 96.05%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.04% trails the industry average.
- STATE STREET CORP's earnings per share declined by 17.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STATE STREET CORP increased its bottom line by earning $4.61 versus $4.19 in the prior year. This year, the market expects an improvement in earnings ($4.79 versus $4.61).
- You can view the full analysis from the report here: STT Ratings Report