Low Rates to Impact Northern Trust's (NTRS) Q4 Earnings
Low Rates to Impact Northern Trust's (NTRS) Q4 Earnings. Furthermore, securities lending revenues are projected to be up 16.4% sequentially. Yet, investment management revenues are likely to have declined on a sequential basis.Therefore, with steady performance of its components, total C&I trust, investment and other servicing fees are likely to have escalated 1.3% sequentially to $567 million.Let’s have a look at what our quantitative model predicts:Northern Trust does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Earnings ESP: The Earnings ESP for Northern Trust is -0.64%.Zacks Rank: Northern Trust currently carries a Zacks Rank of 2 (Buy), which increases the predictive power of ESP. But we also need to have a positive ESP to be confident of a positive earnings surprise.Here are the other factors that might have influenced the company’s quarterly performance:Controlled Expenses: With Northern Trust’s cost-saving initiatives underway, expenses in the quarter are anticipated to have been under control.Low Foreign Exchange Trading Revenues: Given the low foreign exchange (“FX”) trading volatility in developing and emerging markets, along with mostly reduced volumes in the October-December quarter, the company’s revenues from FX trading might have remained low.Soft Loan Growth: Per the Fed’s latest data, rise in loans is likely to have been low on a sequential basis for the December-end quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Cullen/Frost Bankers, Inc. CFR is slated to report earnings on Jan 30. Click to get this free report Northern Trust Corporation (NTRS) : Free Stock Analysis Report Cullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis Report Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report TD Ameritrade Holding Corporation (AMTD) : Free Stock Analysis Report To read this article on Zacks.com click here.