BNY Mellon Expected to Report Strong Q4 Earnings Growth

BNY Mellon is set to announce its Q4 earnings on January 15, with analysts predicting an EPS increase of 18.8% year-over-year. A solid financial outlook and cautious analyst ratings suggest potential positive movement in BK's stock price.

Date: 01-01-2025

AI Rating: 7

Earnings Per Share (EPS):

Analysts expect BNY Mellon (BK) to report a profit of $1.52 per share for Q4 2024, an increase of 18.8% from $1.28 per share in the same quarter last year. The projected EPS for fiscal 2024 is also positive, predicted to reach $5.84, representing a 15.6% increase from fiscal 2023's $5.05. Furthermore, for fiscal 2025, EPS is expected to grow 13.2% to $6.61.

Revenue Growth:

In Q3 2024, BNY Mellon achieved revenue of $4.7 billion, which surpassed expectations. The company benefited from increased fee revenues and net interest income (NII), alongside significant growth in assets under custody/administration (AUC/A) that rose 14% year-over-year to $52.1 trillion, and assets under management (AUM), which rose 17.7% to $2.1 trillion.

Net Income/Profit Margins: Not specifically mentioned in the text, so not included.

Free Cash Flow (FCF) and Return on Equity (ROE): Not available in the text.

Despite the optimistic revenue and EPS outlook, the report also notes that higher non-interest expenses and credit provisions are moderating investor enthusiasm, suggesting cautious sentiment around the stock. Overall, the consensus rating for BNY Mellon is "Moderate Buy," with a positive sentiment reinforced by analysts' historical performance predictions and the company's recent stock price gains.

Stocks: BK