Analysts predict Northern Trust will see strong earnings growth in Q4 2023
Chicago: Wall Street analysts are buzzing about Northern Trust Corporation’s upcoming earnings report. They expect the company to post earnings of $2.02 per share, which is a solid jump of 38.4% from last year. Revenue is also looking good, projected at $1.93 billion, up 24.8% from the same quarter last year.
However, there’s been a slight dip in the earnings estimates over the last month, down about 1.4%. This shows that analysts have been adjusting their expectations a bit. It’s always interesting to see how these changes can affect investor reactions.
Before earnings come out, it’s smart to keep an eye on these estimates. They can give us a clue about how the stock might perform right after the announcement. Research has shown that changes in earnings estimates often correlate with short-term stock price movements.
While many investors look at the overall earnings and revenue numbers, digging into specific metrics can provide deeper insights. So, let’s check out what analysts are forecasting for Northern Trust’s key metrics.
For instance, they expect the ‘Wealth Management Trust, Investment and Other Servicing Fees- Global Family Office’ to hit around $103.07 million, which is a 17.7% increase year-over-year. That’s pretty impressive!
Then there’s the total for ‘Wealth Management Trust, Investment and Other Servicing Fees,’ which is estimated to reach $542.85 million, marking a 13.5% rise from last year.
Looking at ‘Asset Servicing Trust, Investment and Other Servicing Fees- Custody and Fund Administration,’ analysts predict it will come in at $466.80 million, up 11% from the previous year.
For the total in ‘Asset Servicing Trust, Investment and Other Servicing Fees,’ the estimate is $685.78 million, reflecting a 12.1% increase year-over-year.
On the flip side, ‘Asset Servicing Trust, Investment and Other Servicing Fees- Securities Lending’ is expected to drop to $19.70 million, down 10.5% from last year.
However, ‘Asset Servicing Trust, Investment and Other Servicing Fees- Other’ is projected to rise to $42.70 million, a 10.6% increase.
For ‘Asset Servicing Trust, Investment and Other Servicing Fees- Investment Management,’ the forecast is $156.60 million, which is a nice 19.8% jump from last year.
Analysts also expect the ‘Tier 1 Leverage Ratio’ to be around 7.8%, down from 8.1% last year. The average balance for total earning assets is estimated at $135.06 billion, compared to $125.03 billion from the same quarter last year.
As for nonperforming assets, they’re expected to reach $47.28 million, down from $65.10 million last year. Similarly, ‘Nonaccrual Loans and Leases’ are also projected at $47.28 million, down from $63.60 million last year.
Lastly, the estimated ‘Net Interest Income – FTE Adjusted’ is $559.56 million, compared to $501.10 million from the previous year.
In the past month, Northern Trust shares have gained about 6%, while the S&P 500 has dipped by 2.1%. With a Zacks Rank of #3 (Hold), it looks like NTRS will likely perform in line with the market soon.
