State Street Corp. STT stock fell 6% in premarket trades after the Boston-based financial firm missed consensus estimates for profit and revenue. State Street said its first-quarter net income fell to $549 million, or $1.52 a share, from $604 million, or $1.57 a share, in the year-ago quarter. First-quarter revenue rose slightly to $3.101 billion from $3.081 billion in the year-ago quarter. State Street missed the Wall Street analyst forecasts for $1.64 a share for earnings and $3.126 billion in revenue, according to estimates compiled by FactSet. State Street said it faced fee revenue headwinds from “significantly lower average market levels.” State Street’s servicing fees fell 11%, management fees dropped 12% and foreign exchange trading services revenue dipped 5%, while securities finance revenue increased by 14%. Looking ahead, State Street expects revenue growth in its second quarter.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.