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U.S. Bancorp (USB) Q3 Earnings Beat Estimate, Revenue Up

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Macy's, Nordstrom, Wal-Mart and Amazon are part of Zacks Earnings Preview

Macy's, Nordstrom, Wal-Mart and Amazon are part of Zacks Earnings Preview

Have you been eager to see how U.S. Bancorp USB 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:

An Earnings Beat

U.S. Bancorp came out with earnings per share of $1.06, surpassing the Zacks Consensus Estimate of $1.04. Higher revenues were primarily responsible for this beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for U.S. Bancorp depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last seven days.    

Also, U.S. Bancorp has an impressive earnings surprise history. Before posting earnings beat in Q3, in the prior four quarters, the company delivered positive surprises in three quarters, while in line earnings in the remaining quarter. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.8% in the trailing four quarters.

U.S. Bancorp Price and EPS Surprise

U.S. Bancorp Price and EPS Surprise | U.S. Bancorp Quote

Revenue Came In As Expected   
U.S. Bancorp posted revenues of $5.7 billion, in line with the Zacks Consensus Estimate. It compared favorably with the year-ago number of $5.6 billion.

Key Stats to Note:


  • Net interest margin expanded 1 basis point year over year
  • Average total loans recorded 1.2% year over year growth
  • Non-performing assets declined 23.1% year over year
  • Through dividends and repurchase of common shares, 78% of earnings were returned to shareholders

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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.

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

How the Market Reacted So Far

Following the earnings release, U.S. Bancorp shares were up more than 1% in the pre-trading session. This is in line with 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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