Core Insights - Acroname, a Valens Semiconductor company, has launched the USBExt3c, a 3-port switchable hub designed for USB3 and USB2 extension, featuring advanced PoE and USB-C power delivery, aimed at AV installers and OEM manufacturers [1][2] - The USB3Ext3c addresses power delivery challenges in USB-extended systems, allowing management of various USB devices beyond the limitations of standard USB cables, particularly benefiting high-bandwidth devices [2][3] - The product is built on Acroname's BrainStem platform, utilizing the Valens VS6320 chipset, which is the first ASIC-based high-performance extension solution for USB3.2 [3] Company Statements - Justin Gregg, CEO of Acroname, emphasized that the product enhances reliability in USB connections, facilitating robust system design [4] - Gili Friedman from Valens Semiconductor highlighted the synergies between the two companies, stating that the combination of HDBaseT and BrainStem technologies leads to innovative solutions in USB extension and power delivery [4] Product Launch Details - The USBExt3c will be officially unveiled at Integrated Systems Europe (ISE) 2025 from February 4 to February 7, 2025, and will be showcased at the HDBaseT Alliance booth [4]

Core Viewpoint - The article compares U.S. Bancorp (USB) and Fifth Third Bancorp (FITB) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - U.S. Bancorp has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Fifth Third Bancorp has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank favors stocks with positive revisions to earnings estimates, suggesting that USB has an improving earnings outlook [3][7] Group 2: Valuation Metrics - U.S. Bancorp has a forward P/E ratio of 11.12, while Fifth Third Bancorp has a forward P/E of 12.27, indicating USB may be undervalued [5] - The PEG ratio for USB is 1.80, compared to FITB's PEG ratio of 1.93, suggesting USB has a better growth-to-price ratio [5] - U.S. Bancorp's P/B ratio is 1.44, while Fifth Third Bancorp's P/B ratio is 1.61, further supporting USB's valuation attractiveness [6] - These metrics contribute to USB's Value grade of B and FITB's Value grade of C, indicating USB is the superior value option [6][7]

Company Overview - U.S. Bancorp (USB) is based in Minneapolis and operates in the Finance sector, with a year-to-date share price change of 0.42% [3] - The company currently pays a dividend of $0.5 per share, resulting in a dividend yield of 4.16%, which is higher than the Banks - Major Regional industry's yield of 3.42% and the S&P 500's yield of 1.51% [3] Dividend Performance - U.S. Bancorp's annualized dividend of $2 has increased by 1% from the previous year, with a historical average annual increase of 4.35% over the last 5 years [4] - The company's current payout ratio is 51%, indicating that it pays out 51% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for U.S. Bancorp's earnings in 2025 is projected at $4.32 per share, reflecting a year-over-year earnings growth rate of 8.54% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - U.S. Bancorp is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported earnings per diluted share of $1.01, or $1.07 after adjusting for notable items, with net revenue totaling $7 billion for the quarter and $27.5 billion for the year, showing both sequential and year-over-year growth in net interest income and non-interest income [5][6] - The CET1 capital ratio increased by 10 basis points from the prior quarter to 10.6%, and tangible book value per share rose to $24.63, a 10.4% increase compared to the end of the previous year [8][9] - The adjusted return on tangible common equity was 18.3%, with an improved efficiency ratio of 59.9% in Q4 [9] Business Line Data and Key Metrics Changes - Fee income represented over 40% of total net revenue in Q4, driven by double-digit year-over-year growth in commercial products, trust and investment management, and investment product revenues [9][10] - Average loans totaled $376 billion, a modest increase of 0.4% on a linked quarter basis, supported by commercial lending initiatives and higher seasonal credit card spending [13][14] - Non-interest income growth was noted in trust and investment management, while mortgage banking and payments revenue saw seasonal declines [15][16] Market Data and Key Metrics Changes - Total average deposits increased by 0.7% on a linked quarter basis to $512 billion, with non-interest bearing deposits stabilizing in line with earlier expectations [13] - The average yield across both the investment portfolio and loan book declined slightly due to the impact of variable rates [14] Company Strategy and Development Direction - The company emphasized interconnectedness across its business lines as a strategic focus, aiming to enhance execution and capitalize on growth opportunities [22][48] - The management highlighted a commitment to operational efficiency and expense discipline, which contributed to positive operating leverage of 190 basis points year-over-year [7][22] - The company plans to balance capital accretion with share repurchases, with an initial $100 million in buybacks during the quarter [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges, including inflation and rate volatility, while executing strategic objectives [22] - The company anticipates modest loan and deposit growth for 2025, with expectations for fee growth in the mid-single digits [71][32] - The management remains neutral on interest rate risk, with projections based on two anticipated rate cuts in 2025 [56][60] Other Important Information - The company is closely monitoring the impact of ongoing wildfires in Los Angeles and is involved in response efforts to support affected employees and communities [24] - The management reiterated a focus on organic growth opportunities rather than pursuing large bank M&A in the near term [105][106] Q&A Session Summary Question: Drivers of expected revenue growth for 2025 - Management indicated that fee growth is expected to contribute significantly, with solid momentum in core areas despite some headwinds [30][32] Question: Clarification on NII guidance - Management confirmed that net interest income is expected to be stable, excluding the impact of fewer days in Q1 [30] Question: Strategic plans for the payments business - The management emphasized the importance of the payments business for interconnectedness and client retention, despite current challenges [147][151] Question: Trends in commercial products revenue - Management noted strong growth in commercial products, particularly in client-related derivative activity and new product offerings [128][130] Question: Deposit competition and pricing - Management expects competitive pressures to moderate, with new products aiding deposit growth [140][142] Question: Merchant acquiring yield contraction - Management explained that the contraction was due to a shift towards higher volume, lower margin clients, while tech-led initiatives continue to show strong growth [118][121]

Core Insights - U.S. Bancorp reported $6.98 billion in revenue for Q4 2024, a 3.7% year-over-year increase, with an EPS of $1.07 compared to $0.99 a year ago, slightly missing the revenue estimate by 0.56% but exceeding EPS expectations by 0.94% [1] Financial Performance Metrics - Net interest margin was 2.7%, matching the five-analyst average estimate of 2.7% [4] - Net charge-off ratio was 0.3%, better than the five-analyst average estimate of 0.6% [4] - Total earning assets averaged $614.27 billion, exceeding the five-analyst average estimate of $608.85 billion [4] - Book value per common share was $33.19, below the five-analyst average estimate of $33.91 [4] - Total nonperforming assets amounted to $1.83 billion, better than the four-analyst average estimate of $1.93 billion [4] - Efficiency ratio was 61.5%, worse than the four-analyst average estimate of 59.7% [4] - Total nonperforming loans were $1.79 billion, better than the four-analyst average estimate of $1.88 billion [4] - Tier 1 Capital Ratio was 12.2%, slightly below the two-analyst average estimate of 12.5% [4] - Leverage ratio was 8.3%, slightly below the two-analyst average estimate of 8.4% [4] - Total noninterest income was $2.83 billion, slightly below the six-analyst average estimate of $2.87 billion [4] - Net interest income was $4.18 billion, slightly above the $4.17 billion average estimate based on six analysts [4] - Mortgage banking revenue was $116 million, significantly below the $155.05 million average estimate based on five analysts [4] Stock Performance - U.S. Bancorp shares returned +6.9% over the past month, outperforming the Zacks S&P 500 composite's -1.6% change, with a Zacks Rank 2 (Buy) indicating potential for near-term outperformance [3]

January 16, 2025 U.S. Bancorp 4Q24 Earnings Conference Call U.S. Bank | Confidential 1 Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and as ...

Core Viewpoint - U.S. Bancorp reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.06 per share, and showing an increase from $0.99 per share a year ago, indicating a positive earnings surprise of 0.94% [1][2] Financial Performance - The company posted revenues of $6.98 billion for the quarter ended December 2024, which was 0.56% below the Zacks Consensus Estimate, but up from $6.73 billion year-over-year [2] - Over the last four quarters, U.S. Bancorp has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - U.S. Bancorp shares have increased approximately 6.4% since the beginning of the year, outperforming the S&P 500's gain of 1.2% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.98 for the coming quarter and $4.32 for the current fiscal year, alongside revenues of $6.96 billion and $28.62 billion respectively [7] - The estimate revisions trend for U.S. Bancorp is currently favorable, resulting in a Zacks Rank 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6] Industry Context - The Banks - Major Regional industry, to which U.S. Bancorp belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a strong industry performance potential [8]

Financial Performance - Net income attributable to U.S. Bancorp for Q4 2024 was $1,663 million, up 96.5% compared to $847 million in Q4 2023[2] - Earnings per common share for Q4 2024 was $1.01, compared to $0.49 in Q4 2023, representing a growth of 106.1%[2] - Net income for Q4 2024 reached $1,273 million, compared to $1,198 million in Q3 2024, reflecting a 6.3% increase[17] - Net income attributable to U.S. Bancorp for Q4 2024 was a loss of $248 million, compared to a loss of $938 million in Q4 2023[33] Revenue and Income - Total interest income for Q4 2024 was $7,831 million, a decrease of 3.2% from Q3 2024[2] - Noninterest income increased to $2,833 million in Q4 2024, compared to $2,620 million in Q4 2023, reflecting a growth of 8.1%[2] - Total net revenue for Q4 2024 was $3,079 million, up from $3,047 million in Q3 2024, indicating a growth of 1.0%[17] - Total net revenue for Q4 2024 was a loss of $139 million, an improvement from a loss of $306 million in Q4 2023[33] Assets and Liabilities - Total assets decreased to $678,318 million in Q4 2024 from $686,469 million in Q3 2024[4] - Total assets increased to $671,907 million as of December 31, 2024, up 1.1% from $664,640 million at September 30, 2024[9] - Total assets increased to $251,871 million in Q4 2024, up from $233,707 million in Q4 2023, representing an increase of 7.8% year-over-year[34] Loans and Deposits - Total loans reached $375.655 billion, a slight increase of 0.2% compared to $372.856 billion in the previous year[5] - Total loans increased to $379,832 million in Q4 2024, up from $374,164 million in Q3 2024, representing a growth of 1.8%[15] - Total deposits were $518,309 million, a slight decrease from $521,131 million in Q3 2024[4] - Total deposits rose to $14,449 million in Q4 2024, compared to $11,735 million in Q4 2023, reflecting a growth of 23.2% year-over-year[34] Credit Quality - Provision for credit losses was $560 million in Q4 2024, up from $512 million in Q4 2023[2] - Nonperforming loans increased to $1,384 million in Q4 2024, compared to $1,359 million in Q3 2024, reflecting a rise in credit quality concerns[18] - The provision for credit losses was a benefit of $33 million in Q4 2024, compared to a provision of $66 million in Q4 2023, indicating improved credit conditions[33] Efficiency and Cost Management - The efficiency ratio improved to 61.5% in Q4 2024 from 75.9% in Q4 2023[2] - The efficiency ratio improved to 43.3% in Q4 2024 from 44.5% in Q3 2024, indicating better cost management[17] - The efficiency ratio improved to 58.2% in Q4 2024 from 60.9% in Q4 2023, indicating better cost management[29] Investment and Securities - Investment securities rose to $171.325 billion, reflecting a 5.8% increase from $161.885 billion year-over-year[6] - Investment securities averaged $171,325 million with yields of 3.14%, a decrease from 3.20% in the prior quarter[9] Other Key Metrics - The return on average assets improved to 2.50% in Q4 2024, up from 2.38% in Q3 2024, indicating enhanced profitability[17] - Noninterest income reached $1,161 million, an increase from $1,021 million in the same quarter last year, reflecting a growth of 13.7%[20] - Total average deposit balances increased to $274,569 million, up from $268,801 million year-over-year, representing a growth of 2.8%[20]

Core Viewpoint - Analysts expect U.S. Bancorp (USB) to report quarterly earnings of $1.06 per share, reflecting a year-over-year increase of 7.1% and revenues of $7.02 billion, up 4.3% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.2% higher over the last 30 days, indicating a collective reevaluation by analysts [1][2] Key Financial Metrics - Total earning assets are projected to reach $608.85 billion, up from $594.24 billion in the same quarter last year [4] - Total nonperforming assets are expected to be $1.93 billion, compared to $1.49 billion a year ago [4] - The Efficiency Ratio is estimated at 59.7%, a significant improvement from 75.9% in the same quarter last year [5] - Total nonperforming loans are forecasted at $1.88 billion, up from $1.45 billion year-over-year [5] - The Tier 1 Capital Ratio is expected to be 12.5%, compared to 11.5% in the same quarter last year [5] - The Leverage Ratio is projected to reach 8.4%, up from 8.1% a year ago [6] Revenue Projections - Mortgage banking revenue is estimated at $155.05 million, compared to $137 million last year [6] - Other noninterest income is projected at $167.98 million, down from $228 million year-over-year [6] - Total Noninterest Income is expected to reach $2.86 billion, up from $2.62 billion last year [7] - Net interest income (FTE) is forecasted at $4.19 billion, slightly up from $4.14 billion a year ago [7] - Commercial products revenue is expected to be $383.00 million, compared to $326 million in the same quarter last year [8] - Service charges are projected at $301.95 million, down from $324 million year-over-year [8] Stock Performance - Over the past month, shares of U.S. Bancorp have returned -7.2%, while the Zacks S&P 500 composite has returned -2.2% [8] - U.S. Bancorp currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near future [9]

Core Viewpoint - The market anticipates U.S. Bancorp (USB) will report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - U.S. Bancorp is expected to post quarterly earnings of $1.06 per share, reflecting a year-over-year increase of +7.1% [3]. - Revenues are projected to be $7.03 billion, which is a 4.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.18% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. - The Most Accurate Estimate for U.S. Bancorp is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.43%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictor being a positive Earnings ESP combined with a favorable Zacks Rank [6][8]. - U.S. Bancorp currently holds a Zacks Rank of 2 (Buy), but the negative Earnings ESP complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, U.S. Bancorp exceeded the expected earnings of $1 per share, achieving $1.03, resulting in a surprise of +3% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - The Bank of New York Mellon Corporation (BK), a peer in the banking industry, is expected to report earnings of $1.54 per share, representing a year-over-year increase of +20.3% [17]. - BK's revenues are anticipated to be $4.64 billion, up 7.7% from the previous year [17].