Northern Trust Corp. (NTRS) - Bear of the Day

Northern Trust Corporation's (NTRS) third quarter earnings of $0.64 per share were below the Zacks Consensus Estimate of $0.72, attributed to the low interest rate environment and lingering economic recovery. Last year, the company reported a gain of $0.77 per share and $0.82 in the prior quarter.

We expect increased asset management and servicing fees based on anticipated improvement in equity markets and higher volumes. The company is also poised to benefit with the growth in client network.

However, low interest rates continue to restrain earnings, impacting net interest income and securities lending fees. Moreover, the Dodd-Frank Act will ring in numerous regulatory changes over the next several years, which might act as a deterrent to the company's fundamentals.
 
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