US Bancorp Earnings: Profits Climb By Double Figures Again

Falling revenue did not prevent S&P 500 (NYSE:SPY) component US Bancorp (NYSE:USB) from reporting a profit boost in 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

Results: Net income for US Bancorp rose to $1.47 billion (74 cents per share) vs. $1.27 billion (64 cents per share) in the same quarter a year earlier. This marks a rise of 15.8% from the year-earlier quarter.

Revenue: Fell 3.7% to $5.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: US Bancorp beat the mean analyst estimate of 72 cents per share. It beat the average revenue estimate of $4.98 billion.

Quoting Management: U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “I am very proud to announce our Company’s third quarter results. U.S. Bancorp, today, reported record net income of $1.5 billion, or $.74 diluted earnings per common share, on record total net revenue of $5.2 billion. Once again, we achieved industry-leading performance metrics with returns on average assets and average common equity of 1.70 percent and 16.5 percent, respectively, as well as an efficiency ratio of 50.4 percent. Additionally, we posted positive operating leverage on both a year-over-year and linked quarter basis, and we achieved these results despite an economy described as only modestly growing and burdened by uncertainty.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 17.6% and in the first quarter, the figure rose 27.9%.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter, which saw revenue rise 7.2%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 2 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: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 70 cents a share to 72 cents over the last thirty days. For the fiscal year, the average estimate has moved up from $2.74 a share to $2.80 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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