8-KRegulation FD

STATE STREET CORP 8-K Report, Regulation FD Disclosure (Jun 3, 2008)

Filed June 3, 2008For Securities:STTSTT-PG

Summary

State Street Corporation filed an 8-K on June 3, 2008, primarily to update its financial outlook for the 2008 fiscal year. The company revised its revenue growth projection upwards, now expecting to be at the higher end of its previous 14-17% range. The outlook for operating earnings per share growth (10-15%) and operating return on equity (14-17%) remained unchanged, expected to be in the middle of their respective ranges. These revised financial goals incorporate the anticipated completion and effects of a significant public offering of approximately $2.5 billion in common stock, which commenced on June 2, 2008. The filing also includes a comprehensive forward-looking statement section, detailing numerous risks and uncertainties that could impact State Street's future results. These include market volatility, interest rate fluctuations, liquidity concerns, integration of acquisitions (specifically Investors Financial Services Corp.), legal and regulatory issues, and competitive pressures. Investors are cautioned to consider these risks alongside historical financial results and other SEC filings when evaluating the company.

Key Highlights

  • 1State Street Corporation updated its 2008 financial outlook, revising revenue growth expectations to the higher end of the previously announced 14-17% range.
  • 2Operating earnings per share growth outlook remains at 10-15% (middle of range).
  • 3Operating return on equity outlook remains at 14-17% (middle of range).
  • 4The revised outlook incorporates the effects of a public offering of approximately $2.5 billion of common stock, which commenced on June 2, 2008.
  • 5The filing emphasizes that 'operating basis' financial information excludes non-recurring expenses like merger and integration costs, providing a view of ongoing business operations.
  • 6The report includes extensive forward-looking statements and risk factors, warning investors that actual results may differ materially from projections.
  • 7Key risk factors mentioned include market volatility, interest rates, liquidity, acquisition integration (Investors Financial Services Corp.), and legal/regulatory matters.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to update State Street Corporation's financial outlook for the fiscal year 2008, specifically revising their revenue growth expectations upwards. It also serves to inform investors about the commencement of a significant common stock offering and to reiterate the company's risk factors.

State Street has revised its outlook to expect revenue growth at the higher end of its previously stated 14-17% range. The outlook for operating earnings per share growth (10-15%) and operating return on equity (14-17%) remains unchanged and is expected to be in the middle of their respective ranges.

The public offering of approximately $2.5 billion of common stock, which commenced on June 2, 2008, is a significant event that is incorporated into the company's revised financial outlook. This offering likely aims to bolster capital or fund strategic initiatives.

The filing extensively details numerous risks, including volatility in equity, debt, and currency markets, fluctuations in interest rates, liquidity concerns (especially for fixed-income securities and asset-backed commercial paper), the ability to integrate acquisitions like Investors Financial Services Corp., potential credit rating downgrades of securities, legal and regulatory challenges (particularly concerning SSgA's actively managed fixed-income strategies), and competitive pressures.