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U.S. Bancorp (USB) Q2 Earnings Beat, Revenue Rises

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Have you been eager to see how U.S. Bancorp (USB - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Minneapolis-based popular bank’s earnings release this morning:

An Earnings Beat

U.S. Bancorp came out with earnings per share of 83 cents, beating the Zacks Consensus Estimate of 81 cents. Higher revenues were primarily responsible for this earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for U.S. Bancorp remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last 7 days.    

Moreover, U.S. Bancorp has a decent earnings surprise history. Before posting earnings beat in Q2, in the prior four quarters, the company delivered positive surprises in two quarters, while in line earnings in the remaining quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.65% in the trailing four quarters.

US BANCORP Price and EPS Surprise

US BANCORP Price and EPS Surprise | US BANCORP Quote

Revenue Came In Higher Than Expected  

U.S. Bancorp posted revenues of $5.4 billion, beating the Zacks Consensus Estimate of $5.2 billion. Moreover, it compared favorably with the year-ago number of $5.0 billion.

Key Stats to Note:

  • Average total loans recorded 8.1% year over year growth
  • Average total deposits recorded 7.6% year over year growth
  • Through dividends and repurchase of common shares, 77% of earnings were returned to shareholders

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for U.S. Bancorp. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

How the Market Reacted So Far

Following the earnings release, U.S. Bancorp shares were up more than 2% in the pre-trading session. This is in line to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

Check back later for our full write up on this U.S. Bancorp earnings report!

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