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.

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Northern Trust Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.58% to $0.71 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Decreased 7.01% to $976.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northern Trust Corporation reported adjusted EPS income of $0.71 per share. By that measure, the company missed the mean analyst estimate of $0.72. It missed the average revenue estimate of $999.81 million.

Quoting Management: Frederick H. Waddell, Chairman and Chief Executive Officer, commented, “Our financial performance in the first quarter benefited from strong new business from both personal and institutional clients, as well as higher equity markets. Trust, investment and other servicing fees, which represent 65% of our revenue, grew 10% compared to last year and assets under custody and under management grew 9% and 13%, respectively, compared to last year.

In March, we were pleased to announce a planned increase in our quarterly dividend to $0.31 per common share, and a new share repurchase authorization. These announced actions are part of our capital plan, which was reviewed without objection by the Federal Reserve, demonstrating the strength of our financial position.”

Key Stats (on next page)…

Revenue decreased 5.9% from $1.04 billion in the previous quarter. EPS increased 2.9% from $0.69 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.84 to a profit $0.83. For the current year, the average estimate has moved down from a profit of $3.3 to a profit of $3.22 over the last ninety days.

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