U.S. Bancorp Earnings: Here’s Why the Stock is Falling Now

U.S. Bancorp (NYSE:USB) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.02%.

U.S. Bancorp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.04% to $0.76 in the quarter versus EPS of $0.71 in the year-earlier quarter.

Revenue: Decreased 12% to $4.95 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: U.S. Bancorp reported adjusted EPS income of $0.76 per share. By that measure, the company missed the mean analyst estimate of $0.76. It missed the average revenue estimate of $5 billion.

Quoting Management: U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, Our Company earned record net income of $1,484 million in the second quarter, or $.76 per diluted common share. In addition, we achieved profitability metrics that remain among the very best in our industry, including a return on average assets of 1.70 percent, return on average common equity of 16.1 percent and an efficiency ratio of 51.7 percent. I take great pride in our Companys ability to attain these record results, particularly given the current slow, albeit steady, growth we have seen in the markets we serve.

Key Stats (on next page)…

Revenue decreased 6.22% from $5.28 billion in the previous quarter. EPS increased 4.11% from $0.73 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.77 and has not changed. For the current year, the average estimate is a profit of $3.04, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)