US Bancorp Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component US Bancorp (NYSE:USB) reported its results for the third quarter. U.S. Bancorp is a financial holding company that provides financial services through its subsidiaries, including lending and depository services, cash management, foreign exchange and trust and investment management services.

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US Bancorp Earnings Cheat Sheet for the Third Quarter

Results: Net income for US Bancorp rose to $1.27 billion (64 cents per share) vs. $908 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 40.2% from the year earlier quarter.

Revenue: Revenue was $4.79 billion last quarter.

Actual vs. Wall St. Expectations: USB beat the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $4.7 billion.

Quoting Management: U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “I am exceptionally proud of our third quarter results, as our Company was able to achieve record earnings in what many would describe as a difficult and uncertain economic environment. The results were driven by record total net revenue and lower credit costs, as well as managed expense levels. Total net revenue benefited from both our balance sheet and fee-based businesses and, coupled with our prudent expense management, led to positive operating leverage on both a year-over-year and linked quarter basis. Once again, we achieved industry-leading profitability metrics with a return on average assets of 1.57 percent and a return on average common equity of 16.1 percent.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 25.6% and in the first quarter, the figure rose 56.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 3 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 61 cents per share from 56 cents. For the fiscal year, the average estimate has moved up from $2.18 a share to $2.34 over the last ninety days.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Comerica Incorporated (NYSE:CMA), Zions Bancorporation (NASDAQ:ZION), Pinnacle Financial Partners (NASDAQ:PNFP), Regions Financial Corp. (NYSE:RF), Goldman Sachs Group, Inc. (NYSE:GS), and Capitol Bancorp Ltd. (NYSE:CBC).

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(Source: Xignite Financials)