Northern Trust Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Northern Trust (NASDAQ:NTRS) will unveil its latest earnings on Wednesday, July 18, 2012. Northern Trust is a financial holding company that provides investment management, asset and fund administration, and banking solutions for corporations, institutions, and affluent individuals.

Northern Trust Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 75 cents per share, a rise of 7.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 74 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 75 cents during the last month. Analysts are projecting profit to rise by 8.1% compared to last year’s $2.94.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 67 cents per share against a mean estimate of profit of 66 cents per share.

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A Look Back: In the first quarter, profit rose 6.8% to $161.2 million (66 cents a share) from $151 million (61 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.9% to $1.05 billion from $1.01 billion.

Stock Price Performance: From June 13, 2012 to July 12, 2012, the stock price rose $2.79 (6.5%), from $43.03 to $45.82. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 19, 2012, when shares rose for 10 straight days, increasing 9.5% (+$4.13) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 10.3% (-$4.01) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 4.7% in revenue from the year-earlier quarter to $1 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 0.9% in the second quarter of the last fiscal year, 7.7% in the third quarter of the last fiscal year and 3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Heading into this earnings announcement, net income has dropped 6.2% on average for the last four quarters.

Analyst Ratings: There are mostly holds on the stock with 13 of 17 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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