Results: The Bank of New York Mellon Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

The Bank of New York Mellon Corporation (NYSE:BK) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$4.5b arriving 2.9% ahead of forecasts. Statutory earnings per share (EPS) were US$1.25, 5.3% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Bank of New York Mellon

Taking into account the latest results, the current consensus from Bank of New York Mellon's twelve analysts is for revenues of US$18.0b in 2024. This would reflect a reasonable 2.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 30% to US$5.37. In the lead-up to this report, the analysts had been modelling revenues of US$17.8b and earnings per share (EPS) of US$5.28 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$63.64, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Bank of New York Mellon analyst has a price target of US$70.00 per share, while the most pessimistic values it at US$58.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bank of New York Mellon's past performance and to peers in the same industry. The analysts are definitely expecting Bank of New York Mellon's growth to accelerate, with the forecast 3.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Bank of New York Mellon is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bank of New York Mellon's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$63.64, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Bank of New York Mellon analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.