U.S. Bancorp (USB), the seventh-largest US bank by assets, will report third-quarter earnings on Wednesday, October 17. The company, which had posted earnings beats during the past two quarters, is expected to follow the suit in the third quarter as well, primarily driven by tailwinds offered by better interest rates and lower commercial taxes. Analysts expect third-quarter earnings of $1.03 per share.
The topline is also expected to increase 2% to $5.67 billion, riding on higher net interest and non-interest incomes. The strategic acquisitions that the company had recently made to branch out to newer markets, along with the investments made to enhance its products and services are likely to play a key role in the revenue growth during the quarter.
In the past five years, US Bancorp has reported a revenue CAGR of 3%.
However, analysts are of split opinions about this stock, given the lackluster performance over the past 2 years. The stock is down 6% in the past 52 weeks as well as on a year-to-date basis. On an average, the stock has a HOLD rating and a price target of $59.78, an upside of 18% from Monday’s trading price of $50.62.
Meanwhile, in a more bullish report, analyst firm Oppenheimer had last month raised the annual earnings target for U.S. Bancorp from the prior estimate of $4.05 to $4.11. This report is expected to work in favor of the stock ahead of Wednesday’s earnings announcement.
U.S. Bancorp doubles as a decent dividend stock, with the company recently raising its quarterly dividend to $0.37 from $0.30. The Minneapolis, Minnesota-based bank has a dividend yield of 2.92%, higher than Bank of America (BAC), Citigroup (C) and Goldman Sachs (GS).
Most Popular
Key highlights from Eli Lilly’s (LLY) Q1 2024 earnings results
Eli Lilly and Company (NYSE: LLY) reported first quarter 2024 earnings results today. Worldwide revenue was $8.77 billion, up 26% from the year-ago quarter, driven by increases of 16% in
MCD Earnings: Key quarterly highlights from McDonald’s Q1 2024 financial results
McDonald's Corporation (NYSE: MCD) reported first quarter 2024 earnings results today. Revenues increased 5% year-over-year to $6.1 billion. Revenue growth was 4% in constant currencies. Net income grew 7% to
KO Earnings: All you need to know about Coca-Cola’s Q1 2024 earnings results
The Coca-Cola Company (NYSE: KO) reported its first quarter 2024 earnings results today. Net revenues grew 3% year-over-year to $11.3 billion. Organic revenues grew 11%. Net income attributable to shareowners