Have you been eager to see how U.S. Bancorp (USB) performed in Q4 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 78 cents, beating the Zacks Consensus Estimate of 77 cents. Â Strong top line along with loan and deposit growth was primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for U.S. Bancorp remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 77 cents over the last 7 days.
Also, U.S. Bancorp has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.66% in the trailing four quarters.
Revenue Came In Higher Than Expected Â
U.S. Bancorp posted revenues of $5.2 billion, which marginally beat the Zacks Consensus Estimate of $5.0 billion. Moreover, it compared favorably with the year-ago number of $4.9 billion.
Key Stats to Note:
§  Average total loans recorded 5.9% year over year growth
§  Through dividends and repurchase of 11 million common shares, 66% of fourth-quarter earnings were returned to shareholders
§  Fourth-quarter earnings results included $124 million gain associated with an equity interest in Nuveen Investments, non-interest expense included $35 million of charitable contributions and $53 million related to certain legal matters
  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.
