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Highlights
- The State Street Corp’s (NYSE:STT) total revenue surged 7% YoY in Q3, FY21.
- Albertsons Companies, Inc. (NYSE:ACI) has raised its adjusted EPS forecast to around US$2.50 to US$2.60 in fiscal 2021.
- After solid Q3 results, the ACI Board has declared a 20% increase in the quarterly dividend.
The stocks of State Street Corporation (NYSE:STT) and Albertsons Companies, Inc. (NYSE:ACI) rose more than 1% and 4%, respectively, in the premarket on Monday after reporting modest revenue and profit growth in their latest quarters before the opening bell.
The STT stock traded at US$94.40, up 1.80%, while the ACI stock traded at US$29.80, up 4.34%, from their previous closing prices at around 8:30 am ET on Monday.
Here we explore the quarterly performance of the companies.
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State Street Corporation (NYSE:STT)
State Street Corporation is a financial service and bank holding firm based in Boston, Massachusetts. It provides various financial services like investment management, research and trading solutions, data analytics, and other related services.
The total revenue was up around 7% YoY to US$2.99 billion in Q3, FY21. But on a QoQ basis, it was down about 1%. Its total fee revenue surged around 9% YoY to US$2.50 billion.
The net income came in at US$714 million compared to US$555 million in the third quarter of fiscal 2020. Its diluted earnings per share (EPS) was US$1.96 in the quarter compared to US$1.45 per diluted share in the same quarter of the prior year.
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State Street has a market cap of US$33.90 billion, a P/E ratio of 14.77, and a forward P/E one year of 12.67. Its EPS is US$6.28.
The 52-week highest and lowest stock prices were US$94.64 and US$57.16, respectively. Its trading volume was 3,815,037 on October 15.
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Albertsons Companies, Inc. (NYSE:ACI)
Albertsons Companies is a grocery store company based in Boise, Idaho. The retailer offers various grocery, health and beauty products, and general merchandise.
Its net sales and other revenue were US$16.50 billion in Q2, FY21, compared to US$15.75 billion in the same quarter of the prior year. Its gross profit was US$4.71 billion versus US$4.57 billion in the previous year's second quarter.
The operating income was US$485.9 million compared to US$562 million in Q2, FY20. Its net income came in at US$295.2 million, or US$0.52 per diluted share, compared to US$284.5 million, or US$0.49 per diluted share, in the year-ago quarter.
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Albertsons raised its forecast for adjusted net income per Class A common share to between US$2.50 and US$2.60 in fiscal 2021 from its previous forecast of US$2.20 and US$2.30.
It also projected its adjusted EBITDA to be between US$3.95 billion and US$4.05 billion, compared to its earlier forecast of US$3.7 billion and US$3.8 billion.
The Idaho-based firm's Board of Directors declared a 20% hike in the quarterly dividend on its common stocks from US$0.10 per share to US$0.12 per share on Monday. At the new rate, the annualized dividend will be US$0.48 per share, versus the previous rate of US$0.40 apiece.
Albertsons’ market cap is US$13.32 billion, the P/E Ratio is 25.96, and the forward P/E one year is 12.26. Its EPS is US$1.10. The stock saw the highest price of US$34.09 and the lowest price of US$13.90 in the last 52 weeks. Its share volume on October 15 was 2,270,996.
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Bottomline
Both the stocks witnessed significant growth in the recent quarters. for instance, the State Street Corporation rose 28.35% YTD and Albertsons Companies, Inc. grew 66.82% YTD.
Experts have forecast sustained growth for the two sectors in the coming months. However, investors should evaluate the companies carefully before investing in the stock market.
