US Bancorp (USB) stock slid lower today following the release of the financial services company’s Q4 2024 earnings report. Adjusted earnings per share of $1.07 surpassed Wall Street’s estimate of $1.05 while jumping 8.1% year-over-year from 99 cents.
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US Bancorp’s Q4 revenue of $7.009 billion just barely beats analysts’ estimate of $7 billion. This represents a 3.7% increase year-over-year from $6.762 billion. The company notes this includes $4.176 billion in net interest income on a taxable-equivalent basis.
Despite these beats, shares of USB stock are down 4.91% as of this writing. However, the stock is still up 24.04% over the past year. Investors may have reacted negatively to its diluted EPS of $1.01 being below the $1.05 estimate despite adjusted EPS beating it.
What’s Next for US Bancorp?
US Bancorp chairman and CEO Andy Cecere spoke about the company’s future in the latest earnings release. He claims it’s “well positioned to deliver industry-leading returns on tangible common equity” while maintaining confidence in its “strategy for future growth and our ability to deliver meaningful positive operating leverage.”
US Bancorp expects its net interest income and total noninterest expense to remain relatively stable in Q1 2025 compared to Q4 2024. Additionally, its 2025 guidance includes revenue growth of 3% to 5% compared to the $27.6 billion reported in 2024.
IS USB Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for US Bancorp is Moderate Buy based on 11 Buy and seven Hold ratings over the last three months. With that comes an average price target of $57.13, a high of $65, and a low of $49. This represents a potential 18% upside for USB shares. These ratings and price targets will likely change as analyst update their coverage after the Q4 earnings release.
