Northern Trust Corporation Sees Rise in Earnings and Merger Rumors

Northern Trust Corporation (NTRS) rose on strong earnings and a merger rumor, with a one-month return of 5.89% and a 52-week gain of 46.81%. The Ariel Fund highlighted NTRS as a trusted name with a 135-year track record and a conservative approach to navigating macroeconomic volatility. NTRS is not on the list of 30 Most Popular Stocks Among Hedge Funds.

Northern Trust Corporation (NTRS) has seen a significant rise in its stock price, with a one-month return of 5.89% and a 52-week gain of 46.81%. This upward trend is attributed to the company's strong earnings report and recent merger rumors. The Ariel Fund has highlighted NTRS as a trusted name with a 135-year track record and a conservative approach to navigating macroeconomic volatility.

Northern Trust reported earnings for the quarter ended June 2025, which were largely in line with analyst expectations. The company is expected to post quarterly earnings of $2.08 per share, representing a year-over-year change of +16.9%. Revenues are expected to be $1.98 billion, down 27% from the year-ago quarter [2].

Despite the expected revenue decline, the company's earnings per share (EPS) are expected to increase, driven by a combination of operational efficiency and cost-cutting measures. The company's Most Accurate Estimate is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. However, the stock carries a Zacks Rank of #1, making it difficult to conclusively predict that Northern Trust will beat the consensus EPS estimate [2].

The company's earnings report also coincides with rumors of a potential merger with the Bank of New York Mellon (BNY). While BNY's CEO, Robin Vince, refused to comment on the rumors, he did express interest in organic growth and the company's reorganization efforts. The merger rumors have sparked speculation about the potential benefits of combining the two custody banks, which could lead to a more competitive and dominant player in the asset-servicing market [1].

Northern Trust, however, has expressed little interest in a merger. The company's spokesperson stated that Northern Trust is fully committed to remaining independent and continuing to deliver long-term value to its stakeholders [1].

In summary, Northern Trust's strong earnings report and merger rumors have contributed to its recent stock price appreciation. While the company's earnings are expected to increase, the revenue decline and the uncertainty surrounding the merger rumors may pose challenges for investors.

References:
[1] https://finance.yahoo.com/news/bny-beats-expectations-q2-fueled-110129388.html
[2] https://finance.yahoo.com/news/northern-trust-corporation-ntrs-earnings-140019543.html