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Valued at a market cap of $16.8 billion, Northern Trust Corporation (NTRS) is a provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. The company operates in two segments: Asset Servicing and Wealth Management. The Chicago, Illinois-based company is expected to release its fiscal Q1 2025 earnings results before the market opens on Tuesday, Apr. 22.
Ahead of this event, analysts project NTRS to report a non-GAAP profit of $1.86 per share, reflecting a growth of 9.4% from $1.70 per share in the year-ago quarter. The company holds a solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports.
For fiscal 2025, analysts forecast the NTRS to report non-GAAP EPS of $8.17, up 6.1% from $7.70 in fiscal 2024. Moreover, its earnings are anticipated to grow nearly 9.6% year-over-year to $8.95 in fiscal 2026.
Shares of NTRS have declined 65 bps over the past 52 weeks, slightly outperforming the S&P 500 Index's ($SPX) 1.4% dip. Although NTRS lagged behind the iShares U.S. Financial Services ETF’s (IYG) 6.6% gain over the same time.
Northern Trust’s stock prices rose 2% and maintained a positive momentum for the next five trading sessions after the release of its impressive Q4 results on Jan. 23. Driven by solid momentum across its businesses and growth in net interest income and assets under management & custody, the company’s total revenues increased more than 26% year-over-year to $1.97 billion, exceeding the Street’s expectations by a notable margin. Furthermore, the company’s earnings also experienced a significant boost. Its EPS came in at $2.26, which exceeded the consensus estimates by 11.9%. Moreover, Northern Trust’s return on average equity surged to 15.3%, up from the 4% reported in the year-ago quarter which boosted investor confidence.
However, analysts remain cautious about the stock’s prospects. The consensus opinion on NTRS stock is neutral with an overall “Hold” rating. Out of 15 analysts covering the stock, opinions include one "Strong Buy," one "Moderate Buy," 11 "Holds," and two “Strong Sells.” Its mean price target of $114.39 represents a 33% premium to current price levels.
