NASDAQ$NTRS

Northern Trust Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Northern Trust's Q4 2019 earnings were reported, with a diluted EPS of $1.70 and a return on average common equity of 14.8%.

Northern Trust Corporation reported Q4 2019 net income per diluted common share of $1.70, compared to $1.80 in Q4 2018. Net income was $371.1 million, compared to $409.9 million in the prior-year quarter. The current quarter included a $20.8 million pre-tax charge related to the decision to sell substantially all of the lease portfolio and a $6.8 million pre-tax software disposition charge.

  • Generated year-over-year revenue growth of 3%.
  • Return on average common equity of 14.8%.
  • Assets under Custody and Administration ended the year at $12.1 trillion, up 19% from the prior year.
  • Assets under Management ended the year at $1.2 trillion, up 15% from the prior year.

Headline financials

Total Revenue

$1.55B

Previous: $1.5B+2.9%
EPS (adj)

$1.81

Previous: $1.80+0.6%
Return on Average Common Equity

14.8%

No prior period
Total Assets Under Custody/Administration

$12.1T

No prior period
Total Assets Under Management

$1.23T

No prior period
Capital Expenditures

$108M

Previous: $58.6M+84.6%
Free Cash Flow

$1.53B

Previous: $401M+281.6%
Net Income

$371M

Previous: $410M-9.5%
Operating Income

$476M

No prior period
Gross Profit

$1.55B

Previous: $1.51B+2.7%
Cash & Equivalents

$4.46B

Previous: $4.58B-2.7%
Total Assets

$137B

Previous: $132B+3.5%

Revenue & EPS history

Northern Trust · Revenue · Quarterly

$1.55B

Q4 2019+2.9%vs Q4 2018
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Northern Trust · $425M total across 1 segment · Q4 2019

  • Wealth Management
    $425M

Forward guidance

As we enter 2020, we remain focused on providing our clients with exceptional service and expertise, driving efficiencies in our business, and investing for future growth.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.7%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+11.0%

Q2 2023

Best reaction

-11.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.0%+3.2%+5.1%
Q1 2026+0.6%+3.2%+5.1%
Q3 2025-2.4%-1.8%-1.1%
Q2 2025+2.0%+1.1%+2.7%
Q1 2025+3.0%+5.5%+22.6%
Q4 2024+2.0%+4.7%+5.2%
Q3 2024+7.3%+6.4%+14.3%
Q2 2024-5.0%-4.0%-3.9%
Q1 2024-3.0%-2.7%+2.3%
Q4 2023-2.2%-2.0%-3.6%
Q3 2023-7.2%-9.1%+6.8%
Q2 2023+11.0%+11.0%+7.0%
Q1 2023-11.2%-9.3%-16.7%
Q4 2022-5.7%-4.2%-2.3%
Q3 2022-11.9%-8.7%+5.4%
Q2 2022-3.7%-3.6%-0.7%
Q1 2022+1.9%-2.6%+3.8%
Q4 2021-9.5%-8.3%-5.8%
Q3 2021+3.1%+1.6%-0.7%
Q2 2021-0.9%+0.6%+2.5%
Q1 2021+0.5%+3.1%+11.2%
Q4 2020-0.2%-1.3%+1.6%
Q3 2020+0.0%-4.1%+6.6%
Q2 2020-2.9%-4.0%+2.4%
Q1 2020-4.0%-2.4%-6.8%
Q4 2019-4.1%-9.3%-6.1%
Q3 2019+2.9%+5.1%+9.9%
Q2 2019+4.2%+4.2%-10.8%
Q1 2019+6.4%+6.4%-1.9%
Q4 2018-1.3%+0.4%+2.3%
Q3 2018-6.3%-7.5%-1.8%
Q2 2018+2.6%+4.9%+1.9%
Q1 2018+1.4%+2.6%+3.6%
Q4 2017-1.8%+0.0%-0.3%
Q3 2017+4.3%+4.7%+3.3%
Q2 2017-10.1%-9.7%-9.7%
Q1 2017+2.6%+0.7%-1.2%
Q4 2016-5.3%-6.2%-1.1%
Q3 2016+0.0%+0.0%+14.9%
Q2 2016-0.6%+0.0%+2.2%
Q1 2016+5.8%
Q4 2015-7.7%
Q3 2015-2.1%
Q2 2015-0.1%
Q1 2015+5.2%
Q4 2014+8.9%
Q3 2014-4.0%
Q2 2014-0.2%
Q1 2014-3.6%
Q4 2013+3.3%
Q3 2013+3.7%
Q2 2013-2.7%
Q1 2013-2.0%
Q4 2012-5.2%
Q3 2012+1.7%
Q2 2012-2.3%
Q1 2012+2.4%
Q4 2011+1.3%
Q3 2011-4.6%
Q2 2011+0.3%
Q1 2011+1.1%
Q4 2010-1.1%
Q3 2010-1.1%
Q2 2010+1.2%
Q1 2009-1.3%
Q1 2010+3.6%
Q4 2009+0.6%
Q4 2007+0.6%
Q4 2008+0.6%
Q3 2008-1.2%
Q3 2009-1.2%
Q2 2008+2.3%
Q2 2009+2.3%

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