Have you been eager to see how Northern Trust Corporation (NTRS) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this IL-based popular bank’s earnings release this morning:
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An Earnings Beat
Northern Trust came out with earnings per share of 94 cents, beating the Zacks Consensus Estimate of 81 cents.
Strong top line and lower expenses were primarily responsible for this earnings beat.
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How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Northern Trust depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved 1.3% higher over the last 7 days.
However, Northern Trust doesn’t have a decent earnings surprise history. Before posting an earnings miss/beat in Q4, the company delivered positive surprise in one out of the prior four quarters. Overall, the company missed the Zacks Consensus Estimate by an average of 1.3% in the trailing four quarters.
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Revenue Came In Higher Than Expected  Â
Northern Trust posted revenues of $1.13 billion, which marginally beat line the Zacks Consensus Estimate of $1.10 billion. Further, it compared favorably with the year-ago number of $1.05 billion.
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Key Statistics:
Northern Trust’s results reflect a continued focus on serving evolving needs of its customers, while enhancing profitability and returns to its investors. The company returned $792 million in capital to its shareholders in 2014.
Total assets under custody increased 7% year over year and total assets under management increased 6% during 2014. Improvement in both was driven by new business and higher equity markets.
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What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Northern Trust. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
