NEW YORK (TheStreet) -- State Street (STT) shares are down -1.5% to $68.74 in heavy trading volume despite the company beating analysts second quarter earnings estimates by 13 cents per share, reporting earnings of $1.39 per share.
Revenues rose 4.7% over the previous year's second quarter to $2.68 billion, ahead of analysts $2.6 billion estimates.
The custody bank's lending and investing arms suffered due to the Fed's low benchmark interest rate. However the company's custody assets rose to $21.7 trillion, helping offset the loss of business due to the lower interest rate.
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."