Northern Trust Corporation (NTRS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Northern Trust Corporation (NTRS) reported revenue of $1.73 billion, down 1.6% over the same period last year. EPS came in at $1.49, compared to $1.80 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.72 billion, representing a surprise of +0.30%. The company delivered an EPS surprise of -0.67%, with the consensus EPS estimate being $1.50.
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 Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Balance-Total earning assets: $128.25 billion versus $133.17 billion estimated by four analysts on average.
Net interest margin (FTE): 1.5% compared to the 1.4% average estimate based on four analysts.
Tier 1 Leverage Ratio: 7.9% versus 7.4% estimated by three analysts on average.
Nonaccrual Loans and Leases: $68.80 million compared to the $87.79 million average estimate based on two analysts.
Asset Servicing Trust, Investment and Other Servicing Fees- Total: $626 million compared to the $632.29 million average estimate based on three analysts. The reported number represents a change of +3.8% year over year.
Wealth Management Trust, Investment and Other Servicing Fees- Total: $485.90 million versus the three-analyst average estimate of $485.57 million.
Asset Servicing Trust, Investment and Other Servicing Fees- Securities Lending: $20.40 million compared to the $21.35 million average estimate based on two analysts. The reported number represents a change of -6% year over year.
Asset Servicing Trust, Investment and Other Servicing Fees- Other: $40.40 million versus $38.68 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.8% change.
Asset Servicing Trust, Investment and Other Servicing Fees- Custody and Fund Administration: $428.10 million versus the two-analyst average estimate of $432.66 million. The reported number represents a year-over-year change of +5.1%.
Wealth Management Trust, Investment and Other Servicing Fees- Global Family Office: $91.70 million versus the two-analyst average estimate of $93.97 million.
Asset Servicing Trust, Investment and Other Servicing Fees- Investment Management: $137.10 million versus $138.75 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
Net Interest Income - FTE Adjusted: $469.40 million versus $472.82 million estimated by four analysts on average.
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 -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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