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Valued at a market cap of $20.4 billion, Northern Trust Corporation (NTRS) is a financial holding company that provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals. The Chicago, Illinois-based company is expected to announce its fiscal Q4 earnings results before the market opens on Thursday, Jan. 23.
Ahead of this event, analysts expect the asset management company to report a profit of $1.97 per share, up 34.9% from $1.46 per share in the year-ago quarter. Moreover, the company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. Its adjusted earnings of $1.96 per share in the previous quarter outpaced the forecasted figure by a significant margin of 13.3%
For fiscal 2024, analysts expect NTRS to report an EPS of $7.49, up 19.8% from $6.25 in fiscal 2023. Moreover, in fiscal 2025, EPS is expected to grow 5.6% year-over-year to $7.91.
Shares of NTRS have gained nearly 21.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 23.7% rise and the Financial Select Sector SPDR Fund’s (XLF) 27.7% return over the same time frame.
On Oct. 23, shares of NTRS soared 7% after the company delivered a strong Q3 earnings result. Its revenue climbed 13.6% year-over-year to $2 billion, while its earnings of $2.22 per share increased by a massive 49% from the year-ago quarter. A 7.6% annual rise in fee income and a 21.3% year-over-year growth in net interest income aided its top line. Robust growth in total assets under custody (AUC) and assets under management (AUM) reflects the company’s promising momentum.
Yet, Wall Street analysts are cautious about Northern Trust’s stock, with an overall "Hold" rating. Among 14 analysts covering the stock, one recommends a "Strong Buy," one suggests a "Moderate Buy," 10 indicate a “Hold,” and two recommend a “Strong Sell.” The mean price target for NTRS is $109.11, which indicates a modest 5.9% potential upside from the current levels.
