Northern Trust Earnings: Everything You Must Know Now

Northern Trust Corporation (NASDAQ:NTRS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Northern Trust Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.85% to $0.78 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Decreased 3.35% to $1.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northern Trust Corporation reported adjusted EPS income of $0.78 per share. By that measure, the company missed the mean analyst estimate of $0.83. It missed the average revenue estimate of $1.03 billion.

Quoting Management: Frederick H. Waddell, Chairman and Chief Executive Officer, commented, “Second quarter performance featured solid improvement in net income and earnings per common share versus last year, reflecting increased revenues and disciplined expense management. Our productivity efforts remained on track and capital levels were very strong. We continued to generate growth across our businesses with trust, investment and other servicing fees increasing 8% from a year ago. Our quarterly results led to a 10.0% return on average common equity, our best since the second quarter of 2010.”

Key Stats (on next page)…

Revenue decreased 1.59% from $1.04 billion in the previous quarter. EPS increased 9.86% from $0.71 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.83 and has not changed. For the current year, the average estimate has moved up from a profit of $3.21 to a profit of $3.23 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]