Markets

Northern Trust (NTRS) Miss Q3 Earnings on High Expenses

Have you been eager to see how Northern Trust CorporationNTRS 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:

An Earnings Miss

Northern Trust came out with earnings per share of 96 cents, missing the Zacks Consensus Estimate of 97 cents. Elevated non-interest expenses were primarily responsible for this earnings miss.

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 earnings miss in Q3, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.47% in the trailing four quarters.

Revenue Came In Lower Than Expected

Northern Trust posted revenues of $1.16 billion, which lagged the Zacks Consensus Estimate of $1.17 billion. However, it compared favorably with the year-ago number of $1.08 billion.

Key Stats to Note:

  • Total revenue jumped 7% year over year
  • Northern Trust's results reflect a continued focus on serving evolving needs of its customers, while enhancing profitability and returns to its investors. The company returned $225.5 million in capital to its shareholders in the third quarter.
  • Total assets under custody increased 1% year over year while total assets under management declined 4%.

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. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

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

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


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

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