Analyst Note| Rajiv Bhatia, CFA |
Northern Trust reported second-quarter financial results that generally matched consensus expectations. Revenue of $1.59 billion and earnings per share of $1.72 were close to the FactSet consensus of $1.58 billion and $1.71, respectively. During the quarter, the firm took a $17 million pretax pension charge (we calculate a $0.06 drag on EPS) but also released $27 million of credit loss reserves. Overall, there was little in the quarter that would alter our long-term view of the firm, and we will maintain our wide moat rating and our $90 fair value estimate.