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US Bancorp Third Quarter Earnings Preview
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When US Bancorp (NYSE:USB) releases its third quarter earnings on Wednesday, October 17, 2012, it is expected to report earnings that are up 15.6% from a year ago. The consensus estimate is 74 cents per share, up from earnings of 64 cents per share a year ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: Over the past three months, this has increased from 69 cents. Analysts are expecting earnings of $2.84 per share for the fiscal year.
US Bancorp's expected revenue of $5.14 billion for the quarter is below last year's reported figure of $5.38 billion by 4.5%. Revenue for the fiscal year is expected to come in at $20.24 billion.
Company Performance: In the past four quarters, revenue has shown consistent growth. It increased 6.6% to $5.62 billion in the second quarter. Prior to that, the figure rose 7.2% in the first quarter, 6.5% in the fourth quarter of the last fiscal year and 3.7% in the third quarter of the last fiscal year.
USB has a P/E ratio of 12.8, in line with the industry average. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Find P/E And PEG Ratios
Over the past quarter, the stock price has increased from $32.78 on July 16, 2012 to $34.39. Currently, US Bancorp's stock is on a downward trend. The share price has fallen 80 cents since October 4, 2012.
The Competition: 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. Fourteen of 27 analysts rate US Bancorp a hold. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the regional banks industry is Wells (WFC). Analysts are more optimistic about US Bancorp than about Wells. Only 20 out of 26 analysts rate the latter a buy compared to 12 of 27 for the former.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: Over the past three months, this has increased from 69 cents. Analysts are expecting earnings of $2.84 per share for the fiscal year.
US Bancorp's expected revenue of $5.14 billion for the quarter is below last year's reported figure of $5.38 billion by 4.5%. Revenue for the fiscal year is expected to come in at $20.24 billion.
Company Performance: In the past four quarters, revenue has shown consistent growth. It increased 6.6% to $5.62 billion in the second quarter. Prior to that, the figure rose 7.2% in the first quarter, 6.5% in the fourth quarter of the last fiscal year and 3.7% in the third quarter of the last fiscal year.
Over the past quarter, the stock price has increased from $32.78 on July 16, 2012 to $34.39. Currently, US Bancorp's stock is on a downward trend. The share price has fallen 80 cents since October 4, 2012.
The Competition: 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. Fourteen of 27 analysts rate US Bancorp a hold. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the regional banks industry is Wells (WFC). Analysts are more optimistic about US Bancorp than about Wells. Only 20 out of 26 analysts rate the latter a buy compared to 12 of 27 for the former.
by
Investopedia Staff
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