Analysts predict U.S. Bancorp will report strong Q4 earnings and revenue growth, reflecting positive trends in key financial metrics.
Minneapolis: Wall Street is buzzing about U.S. Bancorp’s upcoming earnings report. Analysts expect the bank to post earnings of $1.06 per share, which is a nice 7.1% increase from last year. They also predict revenues will hit $7.02 billion, up 4.3% from the same quarter last year.
Interestingly, the earnings estimate has been nudged up by 0.2% in the last month. This shows that analysts are feeling a bit more optimistic about the bank’s performance.
Before earnings come out, it’s smart to look at how estimates have changed. This can give us clues about how investors might react. Research shows that changes in earnings estimates often correlate with stock price movements.
While many folks look at overall earnings and revenue, digging into specific metrics can give a clearer picture of how the bank is doing. So, let’s break down what analysts are forecasting for U.S. Bancorp.
For instance, they think the average balance of total earning assets will be around $608.85 billion, up from $594.24 billion last year. That’s a solid jump!
They also expect total nonperforming assets to rise to $1.93 billion, compared to $1.49 billion a year ago. It’s a bit concerning, but it’s part of the game.
As for the efficiency ratio, analysts are looking at 59.7%, a big improvement from last year’s 75.9%. That’s a positive sign!
They predict total nonperforming loans will be about $1.88 billion, up from $1.45 billion last year. And the Tier 1 capital ratio is expected to be 12.5%, compared to 11.5% last year.
Analysts also think the leverage ratio will be around 8.4%, slightly up from 8.1% last year. Plus, they’re forecasting mortgage banking revenue to hit $155.05 million, up from $137 million last year.
On the other hand, they expect other noninterest income to drop to $167.98 million from $228 million last year. But total noninterest income is projected to rise to $2.86 billion, compared to $2.62 billion last year.
Net interest income is also looking good, with estimates around $4.19 billion, up from $4.14 billion last year. And commercial products revenue is expected to reach $383 million, a nice increase from $326 million last year.
Lastly, service charges are projected to be about $301.95 million, down from $324 million last year. Overall, it seems like U.S. Bancorp is on a positive trajectory, even with some bumps along the way.
In the past month, U.S. Bancorp shares have dipped by 7.2%, while the S&P 500 has only dropped 2.2%. Currently, USB has a Zacks Rank of #2 (Buy), suggesting it might outperform the market soon.
