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Northern Trust (NTRS) Q4 Earnings Improve Y/Y, Costs Up

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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

Northern Trust came out with earnings per share of $1.80, up 19% year over year. Higher revenues were primarily responsible for the improvement. The Zacks Consensus Estimate was $1.71.

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 three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.38% in the trailing four quarters.
 

Revenue Came In Higher Than Expected

Northern Trust posted revenues of $1.52 billion, outpacing the Zacks Consensus Estimate of $1.50 billion. Further, it compared favorably with the year-ago number of $1.44 billion.

Key Stats to Note:

 

  • Total assets under custody declined 6% year over year.
  • Total assets under management decreased 8%.
  • Return on average common equity was 17%.


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) 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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