Northern Trust Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Northern Trust (NASDAQ:NTRS) will unveil its latest earnings tomorrow, Wednesday, January 16, 2013. Northern Trust is a financial holding company that provides investment management, asset and fund administration, and banking solutions for corporations, institutions, and affluent individuals.

Northern Trust Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 75 cents per share, a rise of 7.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 76 cents during the last month. For the year, analysts are projecting net income of $2.88 per share, a rise of 5.9% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of 73 cents per share against an estimate of net income of. In the second quarter, the company also missed expectations.

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A Look Back: In the third quarter, profit rose 4.9% to $178.8 million (73 cents a share) from $170.4 million (70 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 1.1% to $1.05 billion from $1.06 billion.

Here’s how Northern Trust traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts are projecting a rise of 3.6% in revenue from the year-earlier quarter to $989.9 million.

Analyst Ratings: There are mostly holds on the stock with 13 of 16 analysts surveyed giving that rating.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 6.8% in the first quarter and 18.2% in the second quarter before increasing again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.2% in the second quarter and dropped again in the third quarter.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)