Financial services giant U.S. Bancorp (NYSE:USB) will be reporting earnings this Thursday before market open. Here’s what you need to know.
U.S. Bancorp beat analysts’ revenue expectations last quarter, reporting revenues of $7.76 billion, up 9.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ tangible book value per share estimates.
Is U.S. Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting U.S. Bancorp’s revenue to grow 9.1% year on year, improving from the 5.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. U.S. Bancorp rarely misses Wall Street’s revenue estimates.
Looking at U.S. Bancorp’s peers in the diversified banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Citigroup delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 0.6%, and JPMorgan Chase reported revenues up 8%, falling short of estimates by 1.5%.
Read our full analysis of Citigroup’s results here and JPMorgan Chase’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the diversified banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.5% on average over the last month. U.S. Bancorp is down 9% during the same time and is heading into earnings with an average analyst price target of $69 (compared to the current share price of $57.02).
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