NOTNorthern Trust Corporation (NTRS) made quarterly profit of $ 1.80 per share, beating Zacks’ consensus estimate of $ 1.67 per share. This compares to a profit of $ 1.32 per share a year ago. These figures are corrected for non-recurring items.
This quarterly report represents a surprise earnings of 7.78%. A quarter ago, this company was expected to post a profit of $ 1.71 per share when it actually produced a profit of $ 1.72, delivering a surprise of 0.58%.
In the past four quarters, the company has beaten consensus EPS estimates three times.
Northern Trust Corporation, which is part of the Zacks Banks – Major Regional industry, reported revenue of $ 1.63 billion for the quarter ended September 2021, beating Zacks’ consensus estimate by 1.46%. This compares to a year ago revenue of $ 1.49 billion. The company has exceeded consensus revenue estimates four times in the past four quarters.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings expectations will primarily depend on management feedback on the profit call.
Northern Trust Corporation shares are up about 30.4% year-to-date against the S&P 500’s 20.3% gain.
What’s next for Northern Trust Corporation?
While Northern Trust Corporation has outperformed the market so far this year, the question that comes to investors’ minds is, what’s next for the stock?
There are no easy answers to this key question, but one reliable metric that can help investors solve this problem is the company’s earnings outlook. This not only includes the current consensus earnings expectations for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this earnings release, the trend in revised estimates for the Northern Trust Corporation was mixed. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status results in a Zacks Rank # 3 (Hold) for the stock. Thus, stocks are expected to move in line with the market in the near future. You can see the full list of Zacks # 1 Rank (Fort Buy) stocks today here.
It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus estimate of EPS is $ 1.78 on $ 1.62 billion of revenue for the coming quarter and $ 6.86 on $ 6.41 billion of revenue for the current fiscal year.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, Banks – Major Regional is currently in the top 35% of over 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
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