We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Trust Income Drive Northern Trust's (NTRS) Q3 Earnings?
Read MoreHide Full Article
Northern Trust Corporation’s (NTRS - Free Report) third-quarter results, scheduled for Oct 18, are expected to reflect a rise in C&IS Trust, Investment and Other Servicing Fees — one of the major revenue components.
Notably, the company provides majority of its asset management services through its C&IS unit, which generates more than 50% of total revenue. The Zacks Consensus Estimate for C&IS Trust, Investment and Other Servicing fees of $493 million for the to-be-reported quarter reflects a year-over-year improvement of 9.3%.
Moreover, Northern Trust uses a lag effect to calculate its corporate custody and investment management fees, i.e. the computations are based on the prior quarter-end valuations. Since the performance of equity markets were relatively decent in the second quarter, the company will likely be able to register growth in custody, servicing and management fees.
Here are the other factors that might influence the company’s Q3 performance:
Modest Rise in Net Interest Income (NII): The Zacks Consensus Estimate for average earnings assets of $111.5 billion reflects a marginal decline from the year-ago quarter. Nevertheless, overall loan growth remained decent in the quarter. Given the improvement in loan balances along with the effect of rising interest rates, Northern Trust should record an increase in NII.
Foreign Exchange Trading Revenues to Rise Modestly: Given the increase in overall foreign exchange (“FX”) trading volatility, as well as higher volumes in the third quarter, the company’s revenues from FX trading will likely increase for the quarter.
Marginal Increase in Expenses: Despite some cost-saving initiatives, Northern Trust’s continued investments in new business activities may lead to a slight increase in expenses.
Let’s have a look at what our quantitative model predicts:
According to our quantitative model, it cannot be conclusively predicted if Northern Trust will be able to beat earnings estimates in the third quarter. This is because it does not have the right combination of two main ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Northern Trust is 0.00%.
Zacks Rank: Northern Trust carries a Zacks Rank of 3, which increases the predictive power of ESP. But we also need to have a positive ESP to be confident of a positive earnings surprise.
Moreover, activities of the company during the third quarter were unable to win analysts’ confidence. As a result, the Zacks Consensus Estimate for earnings of $1.12 remained stable in the last seven days. Nevertheless, the figure reflects a year-over-year improvement of 3.6%.
Also, the Zacks Consensus Estimate for sales of $1.35 billion reflects an improvement of 11.2% from the prior year quarter.
Here are some stocks you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.
The Bank of New York Mellon Corporation (BK - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank of 3. It is scheduled to report results on Oct 19.
Associated Banc-Corp (ASB - Free Report) has an earnings ESP of +1.92% and a Zacks Rank of 3. It is also slated to report results on Oct 19.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
Image: Bigstock
Can Trust Income Drive Northern Trust's (NTRS) Q3 Earnings?
Northern Trust Corporation’s (NTRS - Free Report) third-quarter results, scheduled for Oct 18, are expected to reflect a rise in C&IS Trust, Investment and Other Servicing Fees — one of the major revenue components.
Notably, the company provides majority of its asset management services through its C&IS unit, which generates more than 50% of total revenue. The Zacks Consensus Estimate for C&IS Trust, Investment and Other Servicing fees of $493 million for the to-be-reported quarter reflects a year-over-year improvement of 9.3%.
Moreover, Northern Trust uses a lag effect to calculate its corporate custody and investment management fees, i.e. the computations are based on the prior quarter-end valuations. Since the performance of equity markets were relatively decent in the second quarter, the company will likely be able to register growth in custody, servicing and management fees.
Here are the other factors that might influence the company’s Q3 performance:
Modest Rise in Net Interest Income (NII): The Zacks Consensus Estimate for average earnings assets of $111.5 billion reflects a marginal decline from the year-ago quarter. Nevertheless, overall loan growth remained decent in the quarter. Given the improvement in loan balances along with the effect of rising interest rates, Northern Trust should record an increase in NII.
Foreign Exchange Trading Revenues to Rise Modestly: Given the increase in overall foreign exchange (“FX”) trading volatility, as well as higher volumes in the third quarter, the company’s revenues from FX trading will likely increase for the quarter.
Marginal Increase in Expenses: Despite some cost-saving initiatives, Northern Trust’s continued investments in new business activities may lead to a slight increase in expenses.
Let’s have a look at what our quantitative model predicts:
According to our quantitative model, it cannot be conclusively predicted if Northern Trust will be able to beat earnings estimates in the third quarter. This is because it does not have the right combination of two main ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Northern Trust is 0.00%.
Zacks Rank: Northern Trust carries a Zacks Rank of 3, which increases the predictive power of ESP. But we also need to have a positive ESP to be confident of a positive earnings surprise.
Moreover, activities of the company during the third quarter were unable to win analysts’ confidence. As a result, the Zacks Consensus Estimate for earnings of $1.12 remained stable in the last seven days. Nevertheless, the figure reflects a year-over-year improvement of 3.6%.
Also, the Zacks Consensus Estimate for sales of $1.35 billion reflects an improvement of 11.2% from the prior year quarter.
Northern Trust Corporation Price and EPS Surprise
Northern Trust Corporation Price and EPS Surprise | Northern Trust Corporation Quote
Stocks That Warrant a Look
Here are some stocks you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.
Interactive Brokers Group, Inc. (IBKR - Free Report) is slated to release third-quarter results on Oct 17. It has an Earnings ESP of +5.41% and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Bank of New York Mellon Corporation (BK - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank of 3. It is scheduled to report results on Oct 19.
Associated Banc-Corp (ASB - Free Report) has an earnings ESP of +1.92% and a Zacks Rank of 3. It is also slated to report results on Oct 19.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
See these buy recommendations now >>