Preview: Northern Trust's Earnings

Northern Trust NTRS is gearing up to announce its quarterly earnings on Tuesday, 2025-04-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Northern Trust will report an earnings per share (EPS) of $1.84.

The market awaits Northern Trust's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

The company's EPS beat by $0.26 in the last quarter, leading to a 1.26% increase in the share price on the following day.

Here's a look at Northern Trust's past performance and the resulting price change:

Market Performance of Northern Trust's Stock

Shares of Northern Trust were trading at $88.295 as of April 18. Over the last 52-week period, shares are up 4.55%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Northern Trust

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Northern Trust.

With 13 analyst ratings, Northern Trust has a consensus rating of Neutral. The average one-year price target is $113.69, indicating a potential 28.76% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Blue Owl Capital, Franklin Resources and SEI Inv, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Blue Owl Capital, with an average 1-year price target of $25.6, suggesting a potential 71.01% downside.
• Analysts currently favor an Neutral trajectory for Franklin Resources, with an average 1-year price target of $19.62, suggesting a potential 77.78% downside.
• Analysts currently favor an Neutral trajectory for SEI Inv, with an average 1-year price target of $84.2, suggesting a potential 4.64% downside.

Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Blue Owl Capital, Franklin Resources and SEI Inv, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Northern Trust is positioned in the middle among its peers for Consensus rating. It ranks at the top for Revenue Growth, indicating strong performance in this area. In terms of Gross Profit, Northern Trust is at the bottom compared to its peers. For Return on Equity, Northern Trust is positioned in the middle range.

Unveiling the Story Behind Northern Trust

Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of December 2024, Northern Trust had assets under custody or administration of $16.8 trillion and assets under management of $1.6 trillion.

Understanding the Numbers: Northern Trust's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Northern Trust's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 26.81%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Northern Trust's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 22.81%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Northern Trust's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.76%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Northern Trust's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.29%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 1.12, Northern Trust adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Northern Trust visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.