U.S. Bancorp (NYSE: USB), a financial bank holding company is expected to announce its Q4 FY 2010 earnings results on January 19, 2011. In the last four quarters ending September 2010, the company's reported EPS exceeded analysts' consensus estimates by margins in the range of 3.40 percent and 18.40 percent.
U.S. Bancorp (NYSE:USB) is the nation's 5th largest bank. The bank offers loans, credit, and insurance products to consumers primarily in the Midwestern and Western United States. USB competes against large banks such as Bank of America (NYSE: BAC), as well as regional banks such as Regions Financial Corporation (NYSE: RF).
The company reported net income of $908 million for the third quarter of FY 2010, or $0.45 per common share an increase of 50.6 percent compared with $603 million in the comparable quarter last year and 18.5 percent higher than the $766 million for the second quarter of FY 2010. The diluted earnings per common share of $0.45 per share in the third quarter were $0.15 higher than the third quarter of FY 2009. The total net revenue for the third quarter was reported as $4.6 billion, an increase of 7.9 percent over the third quarter of FY 2009.
On December 14, 2010, the board of directors of U.S. Bancorp declared a quarterly dividend of $0.05 per common share, payable January 18, 2011, to shareholders of record at the close of business on December 31, 2010.
For fourth quarter, analysts' EPS estimates range from the low of $0.38 to $0.51 per share, compared to consensus estimate of $0.46 per share or $0.30 in the comparable quarter last year. For this quarter, analysts' revenue estimates range from a low of $4.38 billion to a high of $4.63 billion, compared to a consensus estimate of $4.52 billion or $4.33 billion in the comparable quarter a year ago. For the quarter ending December 2010, the consensus EPS forecast has remained the same at $0.46 per share in the last 60 days.
The Company repurchased an immaterial number of shares of its common stock in 2009, compared with 2 million shares in 2008, under various authorizations approved by its Board of Directors. The average price paid for the shares repurchased in 2009 was $14.02 per share, compared with $33.59 per share in 2008. As of December31, 2009, the company had approximately 20 million shares. On July 15, 2009, the company repurchased the warrant from the U.S. Department of the Treasury for $139 million.
In the last 52 weeks, the stock has been trading in the range of $20.44 and $28.43. The stock closed down $0.03 or 0.11 percent to settle at $26.94 on January 3. I forecast FY 2010 EPS at $1.80 per share and based on this estimate I set a target price of $28.
