Have you been eager to see how U.S. Bancorp (USB - Analyst Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Minneapolis-based popular bank’s earnings release this morning:
An Earnings Beat
U.S. Bancorp came out with earnings per share of 80 cents, beating the Zacks Consensus Estimate of 79 cents. Lower expenses along with loan and deposit growth were primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for U.S. Bancorp depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved down 1.3% over the last 7 days.
However, U.S. Bancorp has a decent earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.65% in the trailing four quarters.
Revenue Came As Expected
U.S. Bancorp posted revenues of $5.0 billion, almost in line with the Zacks Consensus Estimate. It compared unfavorably with the year-ago number of $5.2 billion.
Key Stats to Note:
- Average total loans recorded 4% year over year growth
- Average total deposits recorded 8.9% year over year growth
- Through dividends and repurchase of 14 million common shares, 76% of second-quarter earnings were returned to shareholders
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for U.S. Bancorp. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
