NTRS Earnings Prediction
The chart below shows how NTRS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NTRS sees a -0.18% change in stock price 10 days leading up to the earnings, and a +2.95% change 10 days following the report. On the earnings day itself, the stock moves by -1.84%. This data can give you a slight idea of what to expect for the next quarter's release.
NTRS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.68B
12.69%
-6.62%
Gross Margin
--
--
--
Operating Margin
16.17%
129.04%
5.89%
Net Margin
12.39%
257.06%
4.91%
EPS
2.26
334.62%
1.80%
No Data Available
NTRS Earnings Analysis
Northern Trust Corp Corporation (NTRS.O) Earnings Conference Call
Positive
Quarterly Financial Performance Growth: 4th quarter trust fees increased by 12% year-over-year, while net interest income grew by 15%, contributing to a 13% revenue increase and over 50% growth in earnings per share compared to the prior year.
Revenue and Earnings Growth: For the full year, revenue rose by 8%, with earnings per share growing by 24%, reflecting strong market performance and effective execution of strategic priorities.
Shareholder Capital Return: In the 4th quarter, Northern Trust returned over $400 million to shareholders, and for the full year, total capital returned reached $1.5 billion, marking a five-year high.
Wealth Management Performance Boost: The Wealth Management segment saw a 9% increase in wealth deposits and a nearly 400 basis point expansion in segment pretax margin year-over-year, demonstrating strong operational performance.
Asset Servicing Fee Growth: The Asset Servicing business achieved a 9% year-over-year increase in custody and fund administration fees, driven by strong underlying equity markets and new business generation.
Negative
Net Income Decline Analysis: 4th quarter net income was $455,000,000, which reflects a decline in assets under custody and administration by 4% sequentially, indicating potential challenges in maintaining client assets.
Assets Under Management Decline: Assets under management decreased by 1% sequentially, suggesting a stagnation in growth despite a 12% year-over-year increase, raising concerns about future performance.
Cost Management Inefficiencies: Expenses increased by 5.5% year-over-year, outpacing revenue growth of 3% sequentially, indicating potential inefficiencies in cost management.
Capital Ratio Decline: The common equity Tier 1 ratio declined by 20 basis points to 12.4%, suggesting a tightening of capital levels which may limit future growth opportunities.
Investment Portfolio Vulnerabilities: The unrealized pre-tax loss on available-for-sale securities reached $598,000,000, highlighting potential vulnerabilities in the investment portfolio amid market fluctuations.
NTRS FAQs
How does NTRS typically perform around its earnings report dates?
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NTRS Earning Call Sentiment
Earnings call transcript: Northern Trust beats Q4 2024 EPS forecast
NTRS.O
-1.23%Positive
The company reported strong financial performance with record high net interest income and a significant increase in EPS, AUM, and trust fees. Shareholder returns were robust, with substantial share repurchases and dividends. Despite some concerns about expense growth and unclear management responses in the Q&A, the overall sentiment is positive, supported by strong earnings and optimistic guidance. The focus on technology investments and operational efficiency further enhances the positive outlook. Given these factors, a strong positive stock price movement is expected over the next two weeks.
