Northern Trust Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Northern Trust Corp (NASDAQ:NTRS) will unveil its latest earnings on Wednesday, July 20, 2011. Northern Trust Corporation is a financial holding company that provides investment management, asset and fund administration and banking solutions for corporations, institutions and affluent individuals.

Northern Trust Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 69 cents per share, a decline of 11.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 75 cents. Between one and three months ago, the average estimate moved down and dropped from 72 cents during the last month. For the year, analysts are projecting profit of $2.75 per share, a rise of 3.8% from last year.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 59 cents per share versus a mean estimate of profit of 65 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $950.7 million in revenue this quarter, a decline of 2.4% from the year ago quarter. Analysts are forecasting total revenue of $3.81 billion for the year, a rise of 3.3% from last year’s revenue of $3.69 billion.

Analyst Ratings: Analysts seem relatively indifferent about Northern with 14 of 19 analysts surveyed maintaining a hold rating.

Key Stats:

A year-over-year revenue increase in the first quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 2.9% in the first quarter and fell 2.1% in the fourth quarter of the last fiscal year, 2.6% in the third quarter of the last fiscal year and 7.9% in the second quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 19.8% over the past four quarters. The quarter hit the hardest was the second quarter of the last fiscal year, that saw a 36.5% drop.

Competitors to Watch: State Street Corporation (NYSE:STT), The Bank of New York Mellon Corp. (NYSE:BK), SEI Investments Company (NASDAQ:SEIC), Washington Federal Inc. (NASDAQ:WFSL), Capital One Financial Corp. (NYSE:COF), Marshall & Ilsley Corp. (NYSE:MI), Bank Mutual Corporation (NASDAQ:BKMU), New York Community Bancorp, Inc. (NYSE:NYB), Flagstar Bancorp, Inc. (NYSE:FBC), and People’s United Financial, Inc. (NASDAQ:PBCT).

Stock Price Performance: During April 18, 2011 to July 14, 2011, the stock price had fallen $6.65 (-13%) from $51.09 to $44.44. The stock price saw one of its best stretches over the last year between December 7, 2010 and December 14, 2010 when shares rose for six-straight days, rising 4.4% (+$2.25) over that span. It saw one of its worst periods between June 2, 2011 and June 8, 2011 when shares fell for five-straight days, falling 2% (-94 cents) over that span. Shares are down $10.34 (-18.9%) year to date.

(Source: Xignite Financials)

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