These Analysts Cut Their Forecasts On U.S. Bancorp Following Q1 Results
Portfolio Pulse from Avi Kapoor
U.S. Bancorp (NYSE:USB) reported Q1 FY24 earnings with a slight beat on adjusted EPS at 90 cents versus the consensus of 88 cents, but saw a 6.4% Y/Y decline in revenue at $6.7 billion. The company's net interest margin decreased, and non-performing assets increased significantly. Following the results, USB cut its FY24 net interest income guidance and saw a minor stock price decline. Analysts from Keefe, Bruyette & Woods, Oppenheimer, Barclays, Wells Fargo, and DA Davidson adjusted their price targets and ratings on USB, mostly downward.
April 18, 2024 | 7:02 pm
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U.S. Bancorp reported a mixed Q1 FY24 with an EPS beat but lower revenue and increased non-performing assets. The company also reduced its FY24 net interest income guidance, resulting in a minor stock price decline and several analysts adjusting their price targets and ratings.
The mixed earnings report, coupled with the cut in net interest income guidance and the negative reaction from analysts (price target cuts and rating downgrades), suggests a short-term negative impact on USB's stock price. The significant increase in non-performing assets and the mention of merger and integration-related charges could also contribute to investor caution.
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