Compared to Estimates, Northern Trust (NTRS) Q1 Earnings: A Look at Key Metrics

For the quarter ended March 2024, Northern Trust Corporation (NTRS) reported revenue of $1.65 billion, down 5.6% over the same period last year. EPS came in at $1.70, compared to $1.51 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.79 billion, representing a surprise of -7.91%. The company delivered an EPS surprise of +15.65%, with the consensus EPS estimate being $1.47.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

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 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 the four-analyst average estimate of 1.6%.
  • Average Balance-Total earning assets: $133.82 billion versus the four-analyst average estimate of $129.37 billion.
  • Tier 1 Leverage Ratio: 7.8% compared to the 7.9% average estimate based on three analysts.
  • Total Nonperforming Assets (Nonaccrual Assets): $37 million versus the two-analyst average estimate of $103.41 million.
  • Nonaccrual Loans and Leases: $37 million versus the two-analyst average estimate of $102.66 million.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Total: $639.60 million compared to the $647.48 million average estimate based on three analysts. The reported number represents a change of +6.1% year over year.
  • Wealth Management Trust, Investment and Other Servicing Fees- Total: $503.30 million versus the three-analyst average estimate of $506.52 million. The reported number represents a year-over-year change of +9.3%.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Securities Lending: $17.90 million versus the two-analyst average estimate of $23.59 million. The reported number represents a year-over-year change of -6.3%.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Other: $45 million versus $43.77 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2% change.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Custody and Fund Administration: $436.70 million versus $444.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.6% change.
  • Wealth Management Trust, Investment and Other Servicing Fees- Global Family Office: $95.20 million compared to the $93.38 million average estimate based on two analysts. The reported number represents a change of +10.7% year over year.
  • Asset Servicing Trust, Investment and Other Servicing Fees- Investment Management: $140 million compared to the $138.74 million average estimate based on two analysts. The reported number represents a change of +10.9% year over year.
View all Key Company Metrics for Northern Trust here>>>

Shares of Northern Trust have returned +2.2% over the past month versus the Zacks S&P 500 composite's -0.9% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Northern Trust Corporation (NTRS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.