US Bancorp (USB) stock fell lower today after the financial services company released its Q4 2024 earnings report. Adjusted earnings per share of $1.07 beat Wall Street’s estimate of $1.05 and increased by 8.1% year-over-year from 99 cents.
Q4 revenue of $7.009 billion barely beat analysts’ estimate of $7 billion, representing a 3.7% increase from $6.762 billion. The company’s net interest income on a taxable-equivalent basis was $4.176 billion.
Despite the beats, shares of USB stock dropped 4.91% as of this writing. However, the stock has risen 24.04% over the past year. Investors may have reacted negatively to the diluted earnings per share (EPS) being below the estimate despite the adjusted EPS beating it.
US Bancorp’s chairman and CEO Andy Cecere expressed confidence in the company’s ability to deliver industry-leading returns on tangible common equity while maintaining its growth strategy. The company expects Q1 2025 revenue to remain relatively stable, with guidance for 3% to 5% year-over-year growth.
Analysts’ consensus rating for US Bancorp is Moderate Buy, with an average price target of $57.13 and a range of high and low estimates. This represents potential upside of up to 18% for USB shares.
Source: https://www.tipranks.com/news/usb-earnings-us-bancorp-stock-falls-despite-q4-beats