Earnings Outlook For Northern Trust

On Wednesday, July 21, Northern Trust NTRS will release its latest earnings report. Benzinga's outlook for Northern Trust is included in the following report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Northern Trust earnings will be near $1.72 per share on sales of $1.58 billion, according to analysts. Northern Trust reported a per-share profit of $1.46 when it published results during the same quarter last year. Sales in that period totaled $1.51 billion.

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

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 17.81% increase in the company's EPS figure. Revenue would be up 4.91% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 44.55%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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 http://public.viavid.com/player/index.php?id=144535 https://edge.media-server.com/mmc/p/4m9gfia5 https://edge.media-server.com/mmc/p/zzbpbs4z">here.