Northern Trust Set to Report Q4 Earnings: Analysts Project Strong Growth
Market observers eagerly await Northern Trust Corporation’s (NTRS) fourth-quarter earnings announcement, scheduled for Thursday, January 23. With a market cap of $20.4 billion, Northern Trust provides an array of financial services, including wealth management and banking solutions, to a diverse clientele ranging from corporations to individual families.
Expectations for Q4 Performance
Analysts predict a profit of $1.97 per share for the fiscal quarter, representing a notable 34.9% increase from last year’s $1.46 per share. Historically, Northern Trust has exceeded Wall Street’s expectations, having outperformed its estimated earnings by 13.3% in the previous quarter with adjusted earnings of $1.96 per share.
Forecast for Fiscal 2024 and Beyond
Looking to the future, the outlook remains positive. For fiscal 2024, analysts expect an EPS of $7.49, reflecting a 19.8% rise compared to fiscal 2023’s $6.25. Furthermore, EPS for fiscal 2025 is projected to increase by 5.6%, reaching $7.91.
Stock Performance and Industry Comparison
In the past year, Northern Trust’s shares have risen nearly 21.4%. However, this growth falls short compared to the S&P 500 Index, which has grown by 23.7%, and the Financial Select Sector SPDR Fund (XLF), which has seen a 27.7% increase during the same period.
Recent Growth Drivers
A substantial jump in NTRS shares of 7% on October 23 followed its robust Q3 earnings report. The company’s revenue surged by 13.6% year-over-year to reach $2 billion, and earnings per share increased by 49% compared to last year’s figures, totaling $2.22. This growth was fueled by a 7.6% rise in fee income and a remarkable 21.3% growth in net interest income, contributing to a favorable increase in total assets under custody and assets under management.
Analyst Ratings and Future Outlook
Despite positive projections, Wall Street analysts remain cautious, giving Northern Trust an overall “Hold” rating. Among 14 analysts, only one recommends a “Strong Buy,” while one suggests a “Moderate Buy.” Ten analysts indicate a “Hold,” and two recommend a “Strong Sell.” The average price target for NTRS stands at $109.11, suggesting a modest upside potential of 5.9% from current stock levels.
On the date of publication,
Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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