US Bancorp and M&T Bank Q1 profits expected to fall

Posted Apr 14th 2008 9:58AM by Trey Thoelcke
Filed under: Earnings Reports, Forecasts

Analysts surveyed by Thomson Financial expect M&T Bank Corp. (NYSE: MTB) and US Bancorp (NYSE: USB) to post smaller profits in the first quarter. Both banks are scheduled to report results on Tuesday.

M&T is expected to earn $1.55 per share, which is down marginally from the same period in 2007 when it earned $1.57. The company missed quarterly estimates in the past two quarters. In the third quarter of 2007, it fell short of the consensus estimate by 5.3%, and in the fourth quarter by 63.1%.

M&T is based in Buffalo, New York. M&T Bank offers deposit accounts and loans to individuals and small and mid-sized businesses, and its subsidiaries provide brokerage, leasing, loan servicing, and other services. In the past year, its revenues were $4.6 billion and its net income totaled $654 million. Its EPS growth forecast for the year is 14.1%, better than the banking industry average and the S&P 500. Yet the consensus recommendation of analysts continues to be to hold M&T.

The stock has fallen 20.6% in the past year and trades at a P/E of 14.05. Shares closed Friday at $83.62.

US Bancorp is expected to earn 60 cents, 3% less than in the same period in 2007 when it earned 63 cents. The company has tended to miss quarterly estimates recently. However, in the third quarter of 2007, it beat the consensus estimate by a penny, but in the fourth quarter it fell short by 9.7%.

Minneapolis-based US Bancorp is one of the 10 largest bank holding companies in the U.S. In the past year, its revenues were $20.3 billion and its net income totaled $4.3 billion. Its EPS growth forecast for the year is 3.8%, better than both the banking industry average and the S&P 500. But the consensus recommendation of analysts is to hold USB as well.

The stock has fallen 5.4% in the past year and trades at a P/E of 13.42. Shares closed Friday at $32.62.

For more on the big banks reporting this week, see Q1 expectations for big banks look familiar.

Tags: earnings, earnings reports, M and T Bank, MTB, US Bancorp, USB