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Valued at a market cap of $71.36 billion, U.S. Bancorp (USB) is a financial services holding company that provides various banking and investment services to individuals, businesses, governmental entities, and other financial institutions. The Minneapolis, Minnesota-based company is expected to announce its fiscal Q3 earnings results before the market opens on Wednesday, Oct.16.
Ahead of this event, analysts expect the bank to report a profit of $1 per share, down 4.8% from $1.05 per share in the year-ago quarter. The company has beaten or matched Wall Street's bottom-line estimates in the past four quarters.
In Q2, the company reported an EPS of $0.98, which surpassed the consensus estimates by 2.1%. U.S. Bancorp's Q2 EPS surprise can be attributed to cost controls.
For fiscal 2024, analysts expect USB to report an EPS of $3.86, down 10.4% from $4.31 in fiscal 2023.
Shares of USB have gained 3.4% on a YTD basis, underperforming both the S&P 500 Index's ($SPX) 19.7% return and the Financial Select Sector SPDR Fund’s (XLF) 20.2% increase over the same period.
On Jul. 17, shares of U.S. Bancorp jumped 4.6% after its Q2 earnings release. Its revenue of $6.87 billion in the period marginally surpassed the Wall Street estimates. The company benefited from a 1.7% year-over-year decline in non-interest expenses.
Analysts' consensus view on U.S. Bancorp’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Out of 23 analysts covering the stock, seven advise a "Strong Buy," one indicates “Moderate Buy,” and 15 suggest a “Hold” rating. The average analyst price target for USB is $49.69, indicating a potential upside of 11.5% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
