US Bancorp Earnings: Profits PROPEL By Double Digits Again

S&P 500 (NYSE:SPY) component US Bancorp (NYSE:USB) reported its results for the second quarter. U.S. Bancorp is a financial holding company that provides financial services through its subsidiaries, including lending and depository services, cash management, foreign exchange and trust and investment management services.

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US Bancorp Earnings Cheat Sheet

Results: Net income for US Bancorp rose to $1.42 billion (71 cents per share) vs. $1.2 billion (60 cents per share) in the same quarter a year earlier. This marks a rise of 17.6% from the year-earlier quarter.

Revenue: Rose 8.1% to $5.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: US Bancorp beat the mean analyst estimate of 69 cents per share. Analysts were expecting revenue of $4.98 billion.

Quoting Management: U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “I am exceptionally proud of our Company’s second quarter 2012 results, as we reported record diluted earnings per common share of $.71, an 18.3 percent increase over the prior year’s quarter and a 6.0 percent increase over the first quarter of 2012. Further, our performance metrics remained industry-leading and within the range of our long-term objectives, with a return on average assets of 1.67 percent, a return on average common equity of 16.5 percent and an efficiency ratio of 51.1 percent.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 27.9% and in the fourth quarter of the last fiscal year, the figure rose 38.6%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from 70 cents per share to 69 cents. For the fiscal year, the average estimate has moved up from $2.72 a share to $2.75 over the last ninety days.

Competitors to Watch: Bank of America Corp., Wells Fargo & Company, JPMorgan Chase & Co., Citigroup Inc., Comerica Incorporated, Zions Bancorporation, Pinnacle Financial Partners, Regions Financial Corp., Goldman Sachs Group, Inc., and Capitol Bancorp Ltd.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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