The Boston-based financial services company reported adjusted earnings of $1.46 per diluted share. Analysts had been looking for the company to post earnings of $1.26 per share.
State Street's second quarter revenue was $2.57 billion, missing estimates of $2.65 billion.
The company said that subject to board approval it intends to increase its quarterly common stock dividend to 38 cents per share.
In the past quarter, State Street completed an acquisition of GE's (GE) asset management division for $485 million. The deal adds new alternatives capabilities to the company's Global Advisors and also builds about $100 billion in investment assets.
CEO Jay Hooley also said the company will not be pulling back from Europe in the wake of turmoil there. "Although it is still early days following the Brexit vote, we view the diverse and complex $30 trillion European investment market as a significant opportunity that we are well positioned for, given the scope and footprint of our European operations," he said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, TheStreet Ratings finds including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: STT