What to Expect From US Bancorp Earnings
ThinkstockThis is another top regional bank that took a beating in the recent downturn, dropping over 15% at one point. U.S. Bancorp (NYSE: USB) has $419 billion in assets as of June 30, 2015, and is the parent company of…
This is another top regional bank that took a beating in the recent downturn, dropping over 15% at one point. U.S. Bancorp (NYSE: USB) has $419 billion in assets as of June 30, 2015, and is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The company operates 3,164 banking offices in 25 states and 5,020 ATMs, and it provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions.
The analysts at Deutsche Bank note that the bank has underperformed other, larger regional banks over concerns about lower revenue and higher expenses. They also point to the fact that U.S. Bancorp has no meaningful capital markets exposure, has among the best risk management/credit profile in the industry and generates the highest returns of its peers.
Before the company reported its third quarter results, a few analysts weighed in on it:
- RBC Capital reiterated an Outperform rating with a $48 price target.
- Jefferies has a Hold rating but lowered its price target to $44 from $47.
- Goldman Sachs has a Neutral rating and lowered its price target to $46 from $48.
- Nomura has a Buy rating but lowered its price target to $48 from $50.
So far in 2015 U.S. Bancorp has underperformed the market and the stock is down 6.2% year to date, while over the past 52-weeks the stock is up 6.4%.
Shares of U.S. Bancorp were last trading down 2.2% at $40.50, with a consensus analyst price target of $46.69 and a 52-week trading range of $38.10 to $46.26.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
