Why Northern Trust Stock Tumbled by 5% on Tuesday

Before market open Tuesday, Northern Trust (NASDAQ: NTRS) released its first-quarter earnings report, which set the tone for its stock that day. Unfortunately, this meant quite a tough trading session for the company and its investors, as market players largely sold out of the shares. They fell by 5% in value, notably worse than the 0.2% dip experienced by the bellwether S 500 index.

Northern Trust saw declines in both revenue and, particularly, net income in its first quarter. The former declined by 6% year over year to hit $1.65 billion, while the latter saw a far steeper (36%) drop to slightly under $215 million ($0.96 per share) according to generally accepted accounting principles (GAAP).

Both headline figures were significantly under the average analyst estimates. The consensus prognosticator forecast for revenue was $1.78 billion, and for per-share earnings, it was $1.45.

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Source Fool.com