U.S. Bancorp Earnings: Here’s Why the Stock Price is Slightly Lower

U.S. Bancorp (NYSE:USB) generated a profit, but came up short on beating the Wall Street revenue expectation. The revenue miss is dissappointed shareholders as shares are down 0.69%.

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U.S. Bancorp Earnings Cheat Sheet

Results: Reported $1.35 billion (75 cents per diluted share) in the quarter versus a net gain of $1.35 billion in the year-earlier quarter.

Revenue: Decreased 9.75% to $5.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: U.S. Bancorp reported adjusted net income of 75 cents per share. By that measure, the company met the mean analyst estimate of $0.75. It missed the average revenue estimate of $5.16-$5.19 billion.

Quoting Management: “Credit quality continues to improve, as evidenced by the decline this quarter in both net charge-offs and nonperforming assets. Our annualized net charge-offs ratio of .85 percent for the fourth quarter of 2012 reflects the high quality of our portfolio…

 

..our customers – from individuals, to small businesses, to large corporations – are healthy and productive, having adjusted to the current slow growth, uncertain environment in which they operate today, but they remain poised to take advantage of the recovery as it emerges,” said U.S. Bancorp Chairman, President and CEO Richard K. Davis.

Key Stats:

Revenue decreased 9.37% from $5.64 billion in the previous quarter. Net income decreased 8.41% from $1.47 billion in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.72 to a profit $0.74. For the current year, the average estimate has moved up from a profit of $2.85 to a profit of $2.86 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)