Financial services giant U.S. Bancorp (NYSE:USB) will be reporting results this Thursday morning. Here’s what to expect.
U.S. Bancorp beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $6.93 billion, up 3.6% year on year. It was a mixed quarter for the company, with a decent 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.
This quarter, analysts are expecting U.S. Bancorp’s revenue to grow 2.7% year on year to $7.03 billion, a reversal from the 5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.07 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 7 downward revisions over the last 30 days (we track 12 analysts). U.S. Bancorp has missed Wall Street’s revenue estimates four times over the last two years.
Looking at U.S. Bancorp’s peers in the diversified banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Citigroup delivered year-on-year revenue growth of 8%, beating analysts’ expectations by 3.5%, and JPMorgan Chase reported a revenue decline of 10.5%, topping estimates by 2.9%.
Read our full analysis of Citigroup’s results here and JPMorgan Chase’s results here.
There has been positive sentiment among investors in the diversified banks segment, with share prices up 8.3% on average over the last month. U.S. Bancorp is up 5.9% during the same time and is heading into earnings with an average analyst price target of $52.83 (compared to the current share price of $45.70).
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