Earnings Preview: Northern Trust

| About: Northern Trust (NTRS)

Northern Trust (NASDAQ:NTRS) is expected to report Q4 earnings before market open on Wednesday, January 21 with a conference call scheduled for January 21 at 12:00 pm ET.


Analysts are looking for EPS of 92c on revenue of $968.22M. The consensus range for EPS is 70c-$1.07, while the consensus range for revenue is $888.15M-$1.03B, according to First Call. On December 15, Northern Trust announced that it would eliminate 450 positions and take a pre-tax charge of about $20M-$25M related to the layoffs. Northern Trust's shares were dropping 8.36% in late morning trading Tuesday, after one of its competitors, State Street (NYSE:STT), announced that it may have had $5.5B in losses as of December 31. State Street explained that the market values for the securities in its portfolio dropped significantly last year due to disruptions in the capital markets.

Analyst Views

Analysts' outlooks on Northern Trust has been mixed in recent days. Citigroup initiated the company with a Hold/High Risk rating on December 18. The firm believes the company's revenue and earnings growth should decelerate, due to the stock market's recent struggles and the recession. Citigroup, which expects consensus estimates for the company to continue to drop, set its 2009 EPS estimate for Northern Trust at $3.95. In addition, Ladenburg's Dick Bove last month reduced his 2009 EPS estimate for the company to $3.86 from $4.23. Bove maintained his Neutral rating on the shares, although he believes the company is "well positioned to benefit from the current market turmoil over the longer term." Goldman Sachs raised Northern Trust to Buy from Neutral on January 7, and Keefe Bruyette transferred coverage of the stock with an Outperform rating on December 18. In addition, Barron's recently identified Northern Trust as a depressed bank stock that could rally in 2010.