Earnings Preview: Northern's EPS, Revenue Expected to Rise

Northern (NASDAQ: NTRS) releases its next round of earnings this Wednesday, October 19, 2011. Here's Benzinga's advanced look at Northern's third quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 70 cents/share and revenues of $961.8 million. Northern's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 64 cents/share on revenues of $899 million. Can Northern manage the estimated 9.4% rise in EPS and 7% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Northern were trading at $36.85. Shares are down 32.2% year to date. For a full 12 months, the return has declined by 23.4%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Northern is a Hold. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how Northern compares to rivals in the same sector? Here are a few of the company's peers.

• Bank of New York Mellon (NYSE: BK): Moderate Buy with a $0.59 recent quarter EPS
• Bank Mutual (NASDAQ: BKMU): Hold with a $0.03 recent quarter EPS
• Capital One (NYSE: COF): Moderate Buy with a $2.04 recent quarter EPS
• Flagstar Bancorp (NYSE: FBC): Hold with a -$0.14 recent quarter EPS

Northern is in the banks-midwest industry, which has experienced price/earnings growth of 1.7%.

Finally, a description of the company's main areas of operation: Northern Trust is a financial holding company that provides investment management, asset and fund administration, and banking solutions for corporations, institutions, and affluent individuals.

Take Action:

That's your advanced look at Northern's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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