NTRS: Solid Bank & Investment Company Going Up!

Northern Trust Corp (NTRS) This Chicago-based bank ? which also provides trust, investment management and securities brokerage services ? reported a profit of $1.35 a share. That was up 47% from last year, the biggest increase in at least 14 quarters. The result also topped Wall Street analysts' consensus estimate by 28 cents a share. It was the sixth straight quarter with an upside surprise. Wall Street analysts expect double-digit profit growth to continue over the next three quarters, though at a slower pace of 12% to 15%. Annual earnings have risen the past four years, after declining in 2002 and '03. That resulted largely from the fallout of its relationship with now-defunct Enron Corp. Northern Trust had managed some pension funds for Enron and had lent money to the company. It had to write off millions of dollars in loans. But Northern Trust has recovered and is back on the growth track. Its five-year earnings per share growth rate stands at 17%. Many banks hit a rough patch over the past year, but Northern Trust has held steady on both the earnings and stock-price front. The stock, which retreated 25% from its late 2007 high to its March low, is 3% off its peak. By sharp contrast, its Banks-Super Regional group sank 58% from its February 2007 high to its low last month. Northern Trust has 85 offices in 18 states, plus 15 in Europe, the Middle East and the Asia-Pacific region. Buy. Good Trading!