Shares of U.S. Bancorp (USB) soared in trading on Wednesday following strong third-quarter results. The bank’s earnings increased by 13.2% year-over-year to $1.03 per share, surpassing analysts’ expectations of $0.95 per share.
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However, the bank’s revenues dipped by 2.4% year-over-year to $6.86 billion. Still, this was above consensus estimates of $6.8 billion. Additionally, USB reported $4.14 billion in net interest income (NII), which represents the difference between what it earns from lending and what it pays on deposits. This figure exceeded analysts’ expectations of nearly $4.04 billion
USB Issues FY24 Outlook
Looking ahead, USB expects its net interest income to be “relatively stable” in the fourth quarter. In FY24, the bank has projected its net interest income to be between $16.1 billion and $16.4 billion, with total non-interest income on an adjusted basis likely to grow by mid-single digits year-over-year.
Is USB a Good Stock to Buy Now?
Analysts remain cautiously optimistic about USB stock, with a Moderate Buy consensus rating based on seven Buys and nine Holds. Over the past year, USB has surged by more than 50%, and the average USB price target of $46.13 implies a downside potential of 7.2% from current levels. These analyst ratings are likely to change following USB’s results today.
