The Bank of New York Mellon Corporation ($BK) Earnings (Q3 FY22)

 The Bank of New York Mellon Corporation ($BK) Earnings and Opinion:


The Bank of New York Mellon is a company in the Financial Services sector and operates in the Asset Management industry. The company provides a range of financial products and services in the United States and internationally. The Bank of New York Mellon was founded in 1784 and is currently headquartered in New York, New York. The company was the first company listed on the New York Stock Exchange in 1784. 

The Bank of New York Mellon Financial Results:

  • Revenue of $4.24B beating expectations of $4.20B
  • Net Interest Margin of 1.05% beating expectations of 0.99%
  • Return on Common Equity of 3.5% missing expectations of 9.9%
  • Adj Diluted EPS of $1.21 beating expectations of $1.10
Opinion:
The Bank of New York Mellon is currently trading almost 5% higher in todays trading session. The company reported earnings before the market opened this morning. A goodwill impairment charge was the main reason for the fall in the profit in Q3. However, revenue saw a rise and it was apparent in the net interest revenue category. The goodwill was due to a an impairment in the investment management reporting unit. This was driven lower due to the lower market values and higher discount rates. Overall, the financials were solid and the company seems to be in a solid position. As far as valuation goes, the stock is currently undervalued. The P/B ratio is at 0.93, which is lower than median of 1.31. The P/E ratio estimates by Bloomberg are all lower than the medians of peers. The 5 year CAGR is lower than peers. However, the PEG ratio is higher than the median of 1.33. In my opinion, if you want to hold the oldest stock on the NYSE, this is the stock to buy. It is crazy to see a company that has been able to hold out for over 200 years. If that tells you anything, it shows that this stock is probably here to stay forever, pending any major depressions. The only thing bad about this stock, the fact that you will probably generate little return with this one. It seems to be spitting out reoccurring numbers over and over again. It seems to be a value stock that will give you a little bit of a return, but nothing crazy. I would definitely pass on this stock in terms of optimizing return. I am going to pass at the moment on Bank of New York Mellon Corporation ($BK).


*Information from Bloomberg and Yahoo Finance 

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more