Regional banker U.S. Bancorp (USB) on Wednesday posted a sharp uptick in fourth quarter earnings, beating analyst estimates, as loan loss provisions fell significantly from last year.
The Minneapolis-based company reported fourth quarter net income of $1.35 billion, or 69 cents per share, compared with $974 million, or 49 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 64 cents per share.
Revenue rose 8% from last year to $5.1 billion.
On average, Wall Street analysts expected a smaller profit of 63 cents per share, on lower revenue of $4.76 billion.
USB noted that loan-loss provisions in the latest period were $497 million, down significantly from $912 million last year.
U.S. Bancorp shares rose 33 cents, or +1.2%, in premarket trading Wednesday.
The Bottom Line
Shares of U.S. Bancorp (USB) have a 1.74% dividend yield, based on last night’s closing stock price of $28.77. The stock has technical support in the $26-$27 price area. If the shares can firm up, we see overhead resistance around the $30-$32 price levels.
U.S. Bancorp (USB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.