U.S. Bancorp’s Q1 Earnings Anticipated as Analysts Remain Bullish

U.S. Bancorp (USB), based in Minneapolis, Minnesota, operates as a financial services holding company. It serves individuals, businesses, institutional organizations, government entities, and other financial institutions across the United States. The company holds a market capitalization of $67 billion and functions through several segments, including Wealth, Corporate, Commercial, and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support. USB is slated to release its fiscal Q1 earnings on Wednesday, April 16, before the stock market opens.

Analysts Predict Earnings Growth

In anticipation of this announcement, analysts predict that USB will report a diluted profit of $0.99 per share, marking a 10% increase from last year’s figure of $0.90. Notably, the company has exceeded analysts’ estimates in each of the previous four quarters. In the last quarter, USB achieved an earnings per share (EPS) of $1.07, which slightly surpassed expectations, bolstered by increased fee revenue across most segments.

Projected Earnings for Fiscal 2025 and Beyond

Looking forward, analysts expect USB to post an EPS of $4.32 for the current year, reflecting an 8.5% rise compared to $3.98 in fiscal 2024. The outlook remains positive, with projections estimating an 11.3% annual increase in EPS, reaching $4.81 by fiscal 2026.

Recent Stock Performance

Over the past year, USB shares have experienced a decline of 10%, lagging behind the S&P 500 Index’s 3.6% increase and The Financial Select Sector SPDR Fund’s (XLF) 14.5% return during the same period.

Impact of Previous Earnings Release

Despite being a strong player in the financial sector, USB’s stock fell 5.6% after its Q4 earnings announced on January 16. The company reported a total net revenue increase of 2.1% year-over-year, reaching $7 billion. Noninterest income saw a rise of 3.3%, totaling $2.8 billion. However, net interest income suffered an 8.9% decline compared to last year, falling to $4.1 billion, primarily due to the effects of rising interest rates on deposit composition and pricing.

Analysts Maintain a Positive Outlook

Nevertheless, the consensus rating for USB among analysts remains moderately bullish, with a “Moderate Buy” recommendation. From a group of 23 analysts covering the stock, 10 recommend a “Strong Buy,” two advise a “Moderate Buy,” while the remaining 11 suggest a “Hold.” The average price target projected for USB is $55.27, indicating a considerable potential upside of 42.5% from current trading levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.