Northern Trust Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Northern Trust (NASDAQ:NTRS) will unveil its latest earnings on Wednesday, October 17, 2012. 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 net income of 74 cents per share, a rise of 2.8% from the company’s actual earnings for the year-ago quarter. 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. It has been unchanged at 74 cents during the last month. Analysts are projecting profit to rise by 7% versus last year to $2.91.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of 74 cents per share versus a mean estimate of net income of 75 cents per share. In the first quarter, the company beat estimates by one cent.

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A Look Back: In the second quarter, profit rose 18.2% to $179.6 million (73 cents a share) from $152 million (62 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 0.2% to $1.06 billion from $1.06 billion.

Stock Price Performance: Between September 13, 2012 and October 11, 2012, the stock price dropped $1.83 (-3.7%), from $48.88 to $47.05. The stock price saw one of its best stretches over the last year between August 6, 2012 and August 17, 2012, when shares rose for 10 straight days, increasing 4.3% (+$1.94) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 10.3% (-$4.01) over that span.

Analyst Ratings: There are mostly holds on the stock with 13 of 17 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 7.7% in the third quarter of the last fiscal year, 3% in the fourth quarter of the last fiscal year and 3.9%in the first quarter before dropping in the second quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 4.3% for the last four quarters.

Wall St. Revenue Expectations: Analysts predict a rise of 1.8% in revenue from the year-earlier quarter to $989.2 million.

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

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