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Northern Trust (NTRS) Q4 Earnings Improve on High Revenues

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Have you been eager to see how Northern Trust Corporation (NTRS - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this IL-based popular bank’s earnings release this morning:

Earnings Improve Y/Y

Northern Trust came out with adjusted earnings per share of $1.51, significantly above the prior-year quarter figure of $1.11. Results include tax benefits and certain non-recurring items. The Zacks Consensus Estimate is $1.30. Higher revenues and credit provision aided the earnings improvement.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Northern Trust depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last seven days.

Moreover, Northern Trust has a decent earnings surprise history. The company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.39% in the trailing four quarters.
 

Revenue Came In Higher Than Expected

Northern Trust posted revenues of $1.44 billion, surpassing the Zacks Consensus Estimate of $1.41 billion. Moreover, it compared favorably with the year-ago number of $1.25 billion.

Key Stats to Note:

 

  • Total assets under custody jumped 20% year over year.
  • Total assets under management increased 23%.
  • Return on average common equity was 15.1%.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Northern Trust. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. It all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Northern Trust earnings report!

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