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Valued at a market cap of $71.1 billion, U.S. Bancorp (USB) is a financial services holding company that provides various services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions. The Minneapolis, Minnesota-based company offers banking, investment management, and ancillary services comprising capital markets, treasury management, and receivable lock-box collection service. It is scheduled to announce its fiscal Q2 earnings for 2025 on Wednesday, Jul. 16.
Prior to this event, analysts project this financial services company to report a profit of $1.07 per share, up 9.2% from $0.98 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.03 per share in the previous quarter outpaced the consensus estimates by 4%.
For the full year, analysts expect USB to report EPS of $4.30, up 8% from $3.98 in fiscal 2024. Furthermore, its EPS is expected to grow 9.8% year over year to $4.72 in fiscal 2026.
USB has outpaced the S&P 500 Index's ($SPX) 12.1% rise over the past 52 weeks, with its shares up 14.9%. However, it has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 26.3% return over the same time frame.
On Apr. 16, USB’s shares dipped 2.1% after its Q1 earnings release. Its revenue improved 3.6% year-over-year, reaching $7 billion, with its net interest income rising by 2.7% and noninterest income increasing by 5% from the year-ago quarter. Moreover, its adjusted EPS of $1.03 advanced 14.4% from the same period last year and topped the consensus estimates by 4%. Additionally, compared to the prior-year quarter, its provisions for credit losses declined by 2.9%, while its total nonperforming assets fell by 3.3%, reflecting improved credit and asset quality.
Wall Street analysts are moderately optimistic about USB’s stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 11 recommend "Strong Buy," three suggest “Moderate Buy,” nine indicate “Hold,” and one recommends a “Strong Sell” rating. The mean price target for USB is $51.04, which indicates an 11.9% potential upside from the current levels.
