Bank of New York Mellon: Financial Loser

NEW YORK (TheStreet) -- Bank of New York Mellon (BK) was the loser among the largest U.S. financial names on Wednesday, with shares pulling back 3% to close at $23.08.

The broad indexes all declined after IBM (IBM) reported first-quarter revenue of $24.67 billion and earnings of $2.78 a share. While Big Blue beat the consensus earnings estimate of $2.65, among analysts polled by Thomson Reuters, it missed the consensus revenue estimate of $24.77 billion.

Jim Cramer said he was sticking, with IBM, as "the company continues to transition to a hardware-light model, and that will produce some hiccups," adding that "the fact that business was strong in the United Kingdom and Spain -- Spain of all places -- makes me feel that the product that IBM offers is in need, no matter what."

Getting back to the financial names, the KBW Bank Index (I:BKX) declined 1% to close at 48.18, with 16 out of 24 index components showing declines.

Bank of New York Mellon reported first-quarter earnings per share of 52 cents, matching the consensus estimate.

The custody bank's first-quarter revenue -- excluding net securities gains or losses -- was $3.65 billion during the first quarter, coming in ahead of the consensus estimate of $3.59 billion, and increasing from $3.57 billion the previous quarter, and $3.60 billion a year earlier.

Jefferies analyst Ken Usdin rates Bank of New York Mellon a "Hold," with a $26 price target, and said there were "lots of pluses and minuses within revenues" during the first quarter, "but overall slightly better than expected," while "higher litigation expense muted progress on efficiency initiatives and kept EPS run-rates in check."