Financial services giant Wells Fargo (NYSE: WFC) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
Wells Fargo beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $21.51 billion, up 5.2% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ net interest income estimates.
Is Wells Fargo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Wells Fargo’s revenue to grow 5.8% year on year to $21.65 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.69 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wells Fargo has missed Wall Street’s revenue estimates twice over the last two years.
With Wells Fargo being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for banks stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Wells Fargo is up 2.5% during the same time and is heading into earnings with an average analyst price target of $100.88 (compared to the current share price of $95.20).
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