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With a market cap of $61.2 billion, Minnesota-based U.S. Bancorp (USB) operates as a financial service holding company, providing a wide range of banking, investment, and payment services. The company is expected to announce its fiscal Q2 earnings results before the market opens on Wednesday, July 17.
Ahead of this event, analysts are expecting USB to report a profit of $0.96 per share, down 14.3% from $1.12 per share in the year-ago quarter. The company has met and surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Strong growth across its fee businesses, prudent expense management, and slightly higher net interest income helped U.S. Bancorp surpass the consensus EPS estimate by a narrow margin of 1.1% in the most recent quarter.
For fiscal 2024, analysts expect USB to report EPS of $3.84, down 10.9% from $4.31 in fiscal 2023. However, looking ahead to fiscal 2025, EPS is expected to grow by 9.9% annually to $4.22.
USB has underperformed the broader markets in 2024, with shares down 9.1% on a YTD basis versus the S&P 500 Index's ($SPX) 14.8% gain and the S&P 500 Financials Sector SPDR's (XLF) 9.7% gain over the same period.
Shares of U.S. Bancorp fell recently due to a downward revision in its 2024 net interest income (NII) forecast and lower-than-expected revenue in Q1, influenced by ongoing customer shifts towards interest-bearing accounts and challenges posed by the high interest rate environment.
Analysts' consensus rating on U.S. Bancorp stock is cautiously optimistic overall, with a "Moderate Buy" rating. Out of 23 analysts covering the stock, eight recommend a "Strong Buy," one has a "Moderate Buy" rating, and the remaining 14 give a "Hold" rating. This configuration is slightly less bullish than a month before, with nine analysts suggesting a "Strong Buy."
The average analyst price target for USB is $47.34, suggesting a modest potential upside of 20.6% from the current levels.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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