U.S. Bancorp Analysts Raise Their Forecasts After Q2 Earnings

Core Viewpoint - U.S. Bancorp reported strong adjusted earnings for Q2 but fell short of revenue expectations, leading to a mixed market reaction [1][2]. Financial Performance - Adjusted earnings per share for Q2 were $1.11, exceeding the analyst consensus estimate of $1.07 [1]. - Quarterly sales reached $7.004 billion, reflecting a 2% year-over-year increase, but missed the expected $7.052 billion [1]. - On a GAAP basis, revenues were $6.975 billion, also below the analyst consensus of $7.052 billion [1]. Operational Metrics - The company achieved 250 basis points of positive operating leverage and an efficiency ratio of 59.2% for the quarter [2]. - U.S. Bancorp anticipates a 3%–5% increase in full-year 2025 taxable-equivalent revenue compared to 2024 [2]. - For Q3, net interest income is expected to be between $4.1 billion and $4.2 billion [2]. Market Reaction - U.S. Bancorp shares fell 1% to close at $45.21 following the earnings announcement [3]. - Analysts adjusted their price targets for U.S. Bancorp after the earnings report [3]. Analyst Ratings - Morgan Stanley analyst Betsy Graseck maintained an Overweight rating and raised the price target from $51 to $52 [5]. - Oppenheimer analyst Chris Kotowski maintained an Outperform rating and increased the price target from $65 to $66 [5].