U.S. Bancorp's FY2024 Earnings Estimates Revised Upward by DA Davidson

Analysts at DA Davidson have recently upgraded their earnings forecasts for U.S. Bancorp (NYSE:USB) for the fiscal year 2024. In a research report issued on October 17, the analyst P. Winter indicated that U.S. Bancorp is now expected to achieve an earnings per share (EPS) of $3.99, an increase from their earlier estimate of $3.93. This positive revision reflects confidence in the financial services firm's projected performance.

Recent Financial Performance

In addition to the earnings forecast, U.S. Bancorp reported its latest quarterly financial results on October 16. The company announced an EPS of $1.03 for the quarter, surpassing the consensus estimate of $0.99 by $0.04. Despite achieving this strong earnings figure, U.S. Bancorp's revenue for the quarter fell slightly to $6.86 billion versus the expected $6.90 billion, representing a 2.4% decrease compared to the same period last year.

Analyst Ratings and Expectations

DA Davidson currently maintains a "Neutral" rating on U.S. Bancorp and has set a target price of $54.00 for the stock. The market consensus for U.S. Bancorp's full-year earnings stands at $3.86 per share, while DA Davidson has also projected earnings of $4.36 EPS for FY2025. This highlights a positive outlook among analysts regarding the company's long-term growth.

Market Insights

U.S. Bancorp's stock opened at $49.16, reflecting its performance in the market. Over the past year, the stock has seen a low of $30.47 and a high of $50.47. Market capitalization stands at $76.71 billion, with a price-to-earnings ratio (P/E) of 16.28, indicating a moderate evaluation in comparison to peers. Furthermore, the company has recently increased its dividend from $0.49 to $0.50 per share, representing a yield of 4.07% on an annualized basis.

Institutional Investor Activity

Recently, several institutional investors have adjusted their positions in U.S. Bancorp. Notably, Vanguard Group increased its stake by 0.4% and now holds over 135 million shares. Similar stake increases were reported by Davis Selected Advisers and Bank of New York Mellon Corp. This trend signifies a continued interest in U.S. Bancorp by institutional holders.

Conclusion

Overall, the upward revision of U.S. Bancorp’s earnings estimates reflects optimism among analysts about the bank's future performance, despite recent quarterly revenue challenges. With a solid market position and increasing dividends, U.S. Bancorp remains an important player in the financial services sector.

U.S. Bancorp, Earnings, Analyst