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Tale of the Tape

Zacks Equity Research

U.S. Bancorp (USB) Q3 Earnings in Line, Revenues Rise
October 19, 2016


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Have you been eager to see how U.S. Bancorp (USB - Analyst Report) performed in Q3 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:

Earnings Meet Expectations

U.S. Bancorp came out with third-quarter 2016 earnings per share of 84 cents,  in line with Zacks Consensus Estimate. Results reflected higher revenues and increased expenses.

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. Overall, the company surpassed the Zacks Consensus Estimate by an average of 1% in the trailing four quarters.

US BANCORP Price and EPS Surprise

Revenue Improved Y/Y   

U.S. Bancorp posted revenues of $5.34 billion, increasing 5.7% year over year. Revenues came at par with the Zacks Consensus Estimate.

Key Stats to Note:

Net income for the third-quarter 2016 improved nearly 1% year over year to $1.52 billion.

Mortgage banking revenue surged 40.2% year over year to $314 million.

Provision for credit losses increased 15.2% year over year to $325 million.

Average total loans recorded 7.6% year over year growth.

Through dividends and repurchase of common shares, 79% of earnings were returned to shareholders during the third quarter.

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. Now it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.)

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