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Market Overview

Northern Trust's Earnings: A Preview

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On Thursday, January 21, Northern Trust (NASDAQ:NTRS) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Northern Trust reporting earnings of $1.49 per share on revenue of $1.50 billion. Northern Trust earnings in the same period a year ago was $1.81 per share. Quarterly sales came in at $1.55 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 17.68%. Revenue would be down 3.1% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.38 1.37 1.45 1.74
EPS Actual 1.47 1.46 1.55 1.81
Revenue Estimate 1.47 B 1.49 B 1.54 B 1.55 B
Revenue Actual 1.49 B 1.51 B 1.59 B 1.55 B

Stock Performance

Shares of Northern Trust were trading at $97.36 as of January 19. Over the last 52-week period, shares are down 8.64%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Northern Trust is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings