Should You Buy Frontline (FRO) Ahead of Earnings?
Have you been eager to see how Northern Trust Corporation NTRS performed in Q2 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 Beat
Northern Trust came out with adjusted earnings per share of $1.72, beating the Zacks Consensus Estimate of $1.63. Higher revenues were primarily responsible for the earnings beat. Notably, results exclude certain non-recurring items
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Northern Trust depicted optimism prior to the earnings release. The Zacks Consensus Estimate was revised slightly upward over the last seven days.
Moreover, Northern Trust has a decent earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.88% in the trailing four quarters.
Northern Trust Corporation Price and EPS Surprise
Northern Trust Corporation Price and EPS Surprise | Northern Trust Corporation Quote
Revenue Came In Higher Than Expected
Northern Trust posted revenues of $1.51 billion, surpassing the Zacks Consensus Estimate of $1.49 billion. Moreover, it compared favorably with the year-ago number of $1.33 billion.
Key Stats to Note:
- Total assets under custody jumped 10% year over year.
- Total assets under management increased 12%.
- Return on average common equity was 16.5%.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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.