US Bancorp (NYSE: USB) – Q2 FY 2011 Earnings Preview
By:NewsyStocks   Monday, July 11, 2011 11:11 AM

U.S. Bancorp (NYSE: USB), a financial bank holding company is expected to announce its second quarter FY 2011 earnings results on July 20, 2011. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimates by margins in the range of 4.70 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. U.S. Bancorp provides a full range of financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services. It also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage and leasing. USB competes against large banks such as Bank of America (NYSE: BAC), as well as regional banks such as Regions Financial Corporation (NYSE: RF).

During the second quarter, US Bancorp's board of directors declared a quarterly dividend of $0.125 per common share, payable July 15, 2011, to shareholders of record at the close of business on June 30, 2011.

For Q1 FY 2011

  • Total net revenue on a taxable-equivalent basis for the first quarter of 2011 was $4.5 billion; $198 million or 4.6 percent higher than the first quarter of FY 2010.
  • US Bancorp reported net income of $1.04 billion for the quarter, up 56 percent compared to net income of $669 million in the first quarter FY 2010.
  • Earnings for the quarter increased 53 percent to $0.52 per diluted share, compared to earnings of $0.34 per diluted share for the same quarter last year.
  • During the quarter, its Tier 1 common equity ratio was 8.2 percent and Tier 1 capital ratio was 10.8 percent.
  • USB acquired First Community Bank of New Mexico during the quarter in a transaction with the Federal Deposit Insurance Corp. (FDIC).

For FY 2010

For full year 2010, US Bancorp reported net interest income of $9.78 billion, up from $8.7 billion in FY 2009. Net income for the year was $3.3 billion, or $1.73 per diluted share, compared to net income of $1.8 billion, or $0.97 per diluted share reported for FY 2009.

Analysts Forecast

For the second quarter, analysts' EPS estimates range from a low of $0.46 to a high of $0.57 per share, compared with a consensus estimate of $0.53 per share to $0.45 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $4.45 billion to a high of $4.61 billion, compared with a consensus estimate of $4.55 billion to $4.52 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has remained unchanged at $0.53 per share for the last 90 days.

In the last 52-weeks, US Bancorp's stock has been trading in the range of $20.44 and $28.94. The stock last traded at $25.30, down 0.29 points, or 1.13 percent on July 6, 2011 on the New York Stock Exchange.