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Here's What Key Metrics Tell Us About Northern Trust Corporation (NTRS) Q4 Earnings

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Northern Trust Corporation (NTRS - Free Report) reported $1.55 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.7%. EPS of $1.46 for the same period compares to $1.65 a year ago.

The reported revenue represents a surprise of -7.18% over the Zacks Consensus Estimate of $1.66 billion. With the consensus EPS estimate being $1.33, the EPS surprise was +9.77%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Northern Trust Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net interest margin (FTE): 1.6% versus 1.5% estimated by four analysts on average.
  • Average Balance-Total earning assets: $125.03 billion compared to the $125.49 billion average estimate based on four analysts.
  • Tier 1 Leverage Ratio: 8.1% versus the three-analyst average estimate of 7.9%.
  • Total Nonperforming Assets (Nonaccrual Assets): $65.10 million versus the two-analyst average estimate of $104.27 million.
  • Nonaccrual Loans and Leases: $63.60 million versus the two-analyst average estimate of $104.12 million.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Total: $611.70 million versus $624.90 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4% change.
  • Wealth Management Trust, Investment and Other Servicing Fees- Total: $478.30 million versus $483.42 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.3% change.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Securities Lending: $22 million versus the two-analyst average estimate of $20.43 million. The reported number represents a year-over-year change of +14%.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Other: $38.60 million versus $40.91 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Custody and Fund Administration: $420.40 million versus the two-analyst average estimate of $426.10 million. The reported number represents a year-over-year change of +3.5%.
  • Wealth Management Trust, Investment and Other Servicing Fees- Global Family Office: $87.60 million versus the two-analyst average estimate of $91.40 million. The reported number represents a year-over-year change of +3.6%.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Investment Management: $130.70 million compared to the $137.92 million average estimate based on two analysts. The reported number represents a change of +5.6% year over year.
View all Key Company Metrics for Northern Trust Corporation here>>>

Shares of Northern Trust Corporation have returned -0.2% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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