US Bancorp Earnings Preview: Double-Digit EPS Growth Expected - Bank of America (NYSE:BAC)

US Bancorp

USB

is scheduled to report fourth-quarter and full-year 2011 results tomorrow, January 18, before the opening bell. Net income and revenue have risen in the past three quarters. Investors will be looking for that trend to continue, rather than US Bancorp following in the footsteps of JP Morgan Chase

JPM

, which on Friday posted

disappointing quarterly results

. The consensus forecast of analysts is that this regional lender will report that its per-share earnings rose from $0.49 per share a year ago to $0.63. That estimate is unchanged from 60 days ago. And for the full year, analysts expect earnings to have risen 27.9% to $2.40 per share. That estimate is up a couple of pennies over the past 60 days. Note that analysts have underestimated US Bancorp's per-share earnings in the past six quarters. For the three months that ended in December, revenues are predicted to be up marginally to $4.8 billion. Also, analysts forecast that full-year revenues inched up 2.9% from the previous year to $18.7 billion.

The Company

Minneapolis-based US Bancorp provides various banking and financial services to individuals, corporations and charitable organizations in the U.S. through a network of more than 3,000 banking offices and 5,300 ATMs. It was founded in 1863 and now is an S&P 500 component with a market cap of $55.4 billion. In the fourth quarter, US Bancorp announced record third-quarter results and a record year in SBA lending. It launched a reloadable prepaid Visa card, released a new mobile banking app, and was recognized by Newsweek for its environmental sustainability efforts.

Performance

The company has a long-term earnings per share growth forecast of 10.3%. Its PEG and P/E ratios are lower than the industry average, and the operating margin is greater than the industry average. The return on equity is 15.2% and dividend yield is 1.7%. Of 34 analysts surveyed, 22 rate the stock a Buy or Strong Buy. Their mean price target on shares is about 5% higher than the current share price. The share price has risen more than 45% since hitting a 52-week low in August and is now near a multiyear high. The price is well above the 50-day and 200-day moving averages. The stock has outperformed competitors Bank of America

BAC

and Wells Fargo

WFC

over the past six months.

See also: Wells Fargo Earnings Preview

ACTION ITEMS: Bullish: Investors interested in exchange traded funds invested in US Bancorp might want to consider the following trades:

PowerShares Dynamic Banking PJB is more than 39% higher than the 52-week low.
iShares Dow Jones US Regional Banks IAT is about 36% higher than the 52-week low.
iShares Dow Jones US Financial Services IYG is more than 28% higher than the 52-week low.
PowerShares KBW Bank KBWB is more than 23% higher than the 52-week low.

Bearish: Traders may prefer to consider these alternative positions in the same industry:

Citizens Republic Bancorp CRBC is up more than 116% from the 52-week low.
Chemical Financial CHFC is up about 51% from the 52-week low.
1st Source SRCE is up about 41% from the 52-week low.

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