USB Earnings Prediction
The chart below shows how USB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, USB sees a -5.19% change in stock price 10 days leading up to the earnings, and a -2.39% change 10 days following the report. On the earnings day itself, the stock moves by +1.46%. This data can give you a slight idea of what to expect for the next quarter's release.
USB Key Earning Data
USB Earnings Analysis
Positive
Earnings Per Share Performance: Earnings per diluted share reached $1.01, or $1.07 after adjusting for notable items, reflecting strong financial performance in the fourth quarter.
Net Revenue Performance: Net revenue totaled $7 billion for the quarter and $27.5 billion for the year, showcasing both sequential and year-over-year growth in net interest income and non-interest income.
Capital Strength Improvement: The CET1 capital ratio increased by 10 basis points to 10.6%, indicating a strengthened capital position, while tangible book value per share rose by 10.4% year-over-year to $24.63.
Fee Income Growth: Fee income represented over 40% of total net revenue in the fourth quarter, driven by double-digit year-over-year growth in commercial products, trust and investment management, and investment product revenues.
Share Repurchase Program: The company initiated $100 million in share repurchases during the quarter, balancing capital accretion with shareholder returns.
Negative
Earnings Impact Analysis: Earnings per diluted share reported at $1.01, including $109 million in notable expense items, indicating a significant impact on profitability due to operational efficiency initiatives and lease impairments.
Sluggish Loan Growth: Average loans increased only 0.4% on a linked quarter basis, reflecting sluggish loan growth despite efforts in commercial lending and new originations, suggesting potential challenges in demand.
Revenue Generation Challenges: Non-interest income growth was partially offset by lower mortgage banking and seasonally lower payments revenue, indicating weaknesses in key revenue-generating areas.
Non-Performing Assets Ratio Increase: The ratio of non-performing assets to loans increased to 0.48% from 0.40% a year ago, highlighting a deterioration in asset quality despite overall credit quality metrics being in line with expectations.
Cost Management Challenges: Total non-interest expense for the quarter was $4.2 billion, with full-year expenses just below guidance, suggesting ongoing pressure on cost management despite efforts to maintain expense discipline.
USB FAQs
How does USB typically perform around its earnings report dates?
USB's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -5.19% change leading up to the report and a -2.39% change in the 10 days following the release.
