Northern Trust: An In-Depth Analysis Before Earnings Report

What to Expect from Northern Trust's Upcoming Earnings

Northern Trust (NASDAQ:NTRS) is poised to release its latest quarterly earnings report soon. Investors are eagerly awaiting insights on the company’s financial performance and outlook. Understanding the key metrics and analyst expectations can help guide investment decisions.

Current Earnings Expectations

Analysts predict that Northern Trust will report an earnings per share (EPS) of $2.25, a figure that will be scrutinized closely by the market. Investors are particularly interested in whether the company can surpass this estimate, and any guidance offered for the upcoming quarter can significantly impact stock performance.

Review of Previous Earnings Performance

In the previous quarter, Northern Trust reported an EPS that exceeded expectations by $0.09, resulting in a 3.65% increase in share price the following day. Examining past earnings helps investors gauge how the company typically reacts to earnings reports and can influence future trading decisions.

Northern Trust's Historical Earnings Comparison

Here’s a snapshot of Northern Trust's EPS estimates and actual performance over the last few quarters:

Quarterly EPS Data:

• Q2 2025: Estimated EPS: 2.04, Actual EPS: 2.13
• Q1 2025: Estimated EPS: 1.85, Actual EPS: 1.90
• Q4 2024: Estimated EPS: 2.00, Actual EPS: 2.26
• Q3 2024: Estimated EPS: 1.74, Actual EPS: 1.96

Share Price Overview

As of the latest trading session, Northern Trust shares are priced at $128.85. Over the past year, the stock has seen an impressive increase of 26.32%. Such favorable performance tends to bolster investor confidence heading into earnings announcements.

Investor Sentiment and Analyst Ratings

For investors, staying informed is crucial. Recent analysis of Northern Trust shows that it has garnered ten ratings from analysts, categorized as Neutral overall. The average price target for Northern Trust stands at $131.8, implying a modest upside potential of approximately 2.29%.

Comparison with Industry Peers

Analyzing how Northern Trust stacks up against competitors can provide valuable context for its performance and investor confidence:

• Ares Management shows a promising Outperform trajectory with a 1-year price target of $194.75, suggesting substantial upside potential.
• Franklin Resources is currently on an Underperform trajectory, with a target of $23.62 indicating potential challenges ahead.
• Invesco's ratings remain Neutral, with modest expectations reflected in a target of $25.0.

Key Insights from Peer Analysis

In broader terms, comparing Northern Trust with peers helps in understanding various market dynamics and investment opportunities:

• T. Rowe Price Group: Neutral Ratings, Revenue Growth: -0.58%.
• Ares Management: Outperform Ratings, Revenue Growth: 71.19%.
• Franklin Resources: Underperform Ratings, Revenue Growth: -2.77%.
• Invesco: Neutral Ratings, Revenue Growth: 2.17%.

The analysis indicates that Northern Trust performs relatively well compared to its peers, particularly in gross profit margins.

A Closer Look at Northern Trust

Northern Trust is a prominent provider of wealth management and asset servicing solutions, catering to diverse client needs since its inception in 1889. With a vast network of offices globally, Northern Trust boasts an impressive $16.8 trillion in assets under custody and $1.6 trillion in assets under management as of the end of the previous year.

Financial Indicators and Health

Market Capitalization: Northern Trust’s market capitalization reflects a position below industry averages, suggesting a smaller scale relative to its counterparts.

Revenue Trends: The company has faced significant challenges in revenue growth, experiencing a decline of approximately -26.43% recently.

Profitability Metrics: The net margin stands at 20.66%, which indicates potential operational challenges impacting profitability.

Return on Equity: The firm's ROE of 3.44% shows room for improvement in maximizing equity returns.

Asset Efficiency: The company’s ROA of 0.24% indicates challenges in asset utilization.

Debt Management: With a debt-to-equity ratio of 1.12, Northern Trust maintains a conservative approach to debt, which can be viewed favorably by investors.

Frequently Asked Questions

When is Northern Trust expected to release earnings?

Northern Trust is set to announce its quarterly earnings on a soon-to-be-specified date.

What are analysts predicting for Northern Trust's earnings?

Analysts have projected an EPS of $2.25 for the upcoming quarter.

How has Northern Trust's stock performed over the past year?

The stock has appreciated 26.32% over the last 52 weeks, reflecting strong performance.

What is the consensus rating for Northern Trust?

The consensus rating among analysts is currently Neutral.

What are key financial metrics for Northern Trust?

Key financial indicators include a revenue decline of -26.43%, a net margin of 20.66%, and an ROE of 3.44%.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

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