Northern Earnings: Consecutive Profit Quarter Streak Stays Intact

Northern (NTRS) announced its results for the most recent quarter on July 20, 2011. Let's take a closer look at the numbers and see what steps you can take.

Earnings and Revenue:
Northern posted EPS and revenues short of predictions. The company reported EPS of 62 cents/share versus the 69 cents/share estimate and revenues of $944.8 million versus the $947.2 million estimate. Revenue increased 10% from the same period last year, though EPS is down 24%.  Noninterest income for the quarter was $698.7 million.

For the past five quarters, net income has dropped 20.6% year over year on average.

Income:
For the year, Northern reported net income of $2.63 per share. The company fells short of analysts projections of $2.85. According to the reported number, the company's income fell 23.8% from last year's levels.

Conference Call:
The conference call for second quarter earnings can be accessed here.

Official Comment:
Frederick H. Waddell, Chairman and Chief Executive Officer, commented, "Our financial performance benefited from excellent new business from personal and institutional clients. This performance was the result of our strong competitive positioning and our focus on delivering high quality service and solutions to our clients. We also realized double-digit growth in client assets, with assets under custody increasing 24% to $4.4 trillion and assets under management increasing 13% to $684.1 billion compared to a year ago."

Industry:
Northern is in the banks-midwest industry. That industry is currently enjoying price/earnings growth of 2.4%. The company's EPS compares favorably with its industry's estimated average of 58 cents.

What to Do Next:
Now you're all set to decide what to do with those Northern shares until the next earnings announcement. Whether you buy, sell or hold, check back with before the company's next earnings release for a full preview.

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