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Zacks Equity Research

Northern Trust (NTRS) Post In-line Q3 Earnings, Revenues Lag
October 19, 2016


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Have you been eager to see how Northern Trust Corporation (NTRS - Analyst Report) performed in Q3 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:

In–Line Earnings

Northern Trust came out with earnings per share of $1.08, in line with the Zacks Consensus Estimate.

A rise in revenues was primarily responsible for this earnings beat.

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 7 days.

Moreover, Northern Trust has a decent earnings surprise history. Before posting in-line earnings in Q3, the company delivered positive surprises in three of the prior four quarters.

NORTHERN TRUST Price and EPS Surprise



Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.76% in the trailing four quarters.
Revenue Came In Lower Than Expected

Northern Trust posted revenues of $1.21 billion, which lagged the Zacks Consensus Estimate of $1.24 billion. Moreover, it compared favorably with the year-ago number of $1.16 billion.

Key Stats to Note:

  • Total revenue rose 5% year over year
  • Total assets under custody jumped 13% year over year
  • Total assets under management increased 7%.
  • Return on average common equity was 11.7%

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. While things apparently look favorable, 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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