Northern Trust Earnings Cheat Sheet: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Northern Trust Corporation (NASDAQ:NTRS) reported its results for the second quarter. 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.

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Northern Earnings Cheat Sheet for the Second Quarter

Results: Net income for the Midwest regional bank fell to $152 million (62 cents per share) vs. $199.6 million (82 cents per share) a year earlier. This is a decline of 23.8% from the year earlier quarter.

Revenue: Noninterest income was $698.7 million last quarter.

Actual vs. Wall St. Expectations: NTRS fell short of the mean analyst estimate of 69 cents per share. Analysts were expecting revenue of $947.2 million.

Quoting Management: Frederick H. Waddell, Chairman and Chief Executive Officer, commented, “Our financial performance benefited from excellent new business from personal and institutional clients. This performance was the result of our strong competitive positioning and our focus on delivering high quality service and solutions to our clients. We also realized double-digit growth in client assets, with assets under custody increasing 24% to $4.4 trillion and assets under management increasing 13% to $684.1 billion compared to a year ago.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 6 cents in the first quarter, by 12 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.

Net income has dropped 20.6% year over year on average across the last five quarters. Performance was hurt by a 36.5% decline in the second quarter of the last fiscal year from the year earlier quarter.

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).

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(Source: Xignite Financials)