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Northern Trust (NTRS) Q2 Earnings Beat Estimates, Costs Rise

Zacks Equity Research

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 earnings per share of $1.75, outpacing the Zacks Consensus Estimate of $1.68. Higher revenues were primarily responsible for the improvement.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Northern Trust depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 2.4% lower over the last 30 days.

However, Northern Trust has an impressive earnings surprise history. Before posting an 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 4.33% in the trailing four quarters.

Northern Trust Corporation Price and EPS Surprise

Northern Trust Corporation Price and EPS Surprise

Northern Trust Corporation price-eps-surprise | Northern Trust Corporation Quote

Revenue Came In as Expected

Northern Trust posted revenues of $1.51 billion in-line with the Zacks Consensus Estimate. Further, it improved 1% on a year-over-year basis.

Key Stats to Note:
 

  • Non-interest expenses increased 1% year over year
  • Total assets under management increased 2% sequentially
  • Net interest margin expanded 13 basis points year over year


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong 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 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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