Global financial services company BNY NYSE: BK) will be reporting results this Tuesday before market hours. Here’s what you need to know.
BNY beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $5.07 billion, up 9.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.
Is BNY a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting BNY’s revenue to grow 6.1% year on year to $5.14 billion, slowing from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.98 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BNY has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.8% on average.
Looking at BNY’s peers in the capital markets segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 3%, and FactSet reported revenues up 6.9%, topping estimates by 1.3%. Jefferies traded down 5.6% following the results while FactSet was also down 2.6%.
Read our full analysis of Jefferies’s results here and FactSet’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 4.4% on average over the last month. BNY is up 2.6% during the same time and is heading into earnings with an average analyst price target of $127.67 (compared to the current share price of $119.40).
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