These Analysts Cut Their Forecasts On U.S. Bancorp Following Q1 Results

U.S. Bancorp USB reported upbeat first-quarter FY24 earnings on Wednesday.

Revenue stood at $6.7 billion (-6.4% Y/Y), which aligns with the consensus. Adjusted earnings per share came in at 90 cents, beating the consensus of 88 cents.

The net interest margin of 2.70% shrunk 40 basis points year over year. Non-interest income grew 7.7% year over year to $2.7 billion.

Total allowance for credit losses was $7.9 billion, up 5.1% year over year. As of Mar 31, 2024, U.S. Bancorp’s non-performing assets amounted to $1.79 billion, up 51.2% from the year-ago period’s level.

Andy Cecere, Chairman, President and CEO said, "Diluted earnings per share of $0.90, as adjusted, excluded $(0.12) of notable items that included the last of our merger and integration-related charges related to the acquisition of MUFG Union Bank and an anticipated increase in the FDIC special assessment."

USB cut FY24 net interest income (taxable-equivalent basis) guidance to $16.1 billion-$16.4 billion from the previously expected $16.6 billion+. For the second quarter, USB expects net interest income (taxable-equivalent basis) to be relatively stable sequentially.

USB shares fell 0.2% to trade at $39.43 on Thursday.

These analysts made changes to their price targets on U.S. Bancorp following earnings announcement.

• Keefe, Bruyette & Woods cut the price target on U.S. Bancorp from $52 to $45. Keefe, Bruyette & Woods analyst David Konrad downgraded the stock from Outperform to Market Perform.
• Oppenheimer slashed the price target on U.S. Bancorp from $55 to $54. Oppenheimer analyst Chris Kotowski maintained an Outperform rating.
• Barclays cut the price target on U.S. Bancorp from $56 to $52. Barclays analyst Jason Goldberg maintained an Overweight rating.
• Wells Fargo cut the price target on U.S. Bancorp from $50 to $48. Wells Fargo analyst Mike Mayo maintained an Overweight rating.
• DA Davidson lowered the price target on U.S. Bancorp from $45 to $44. DA Davidson analyst Peter Winter maintained a Neutral rating.

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