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Wells Fargo (WFC) Beats on Q1 Earnings, Revenue Falls Y/Y
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Have you been eager to see how Wells Fargo & Company (WFC - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based money center bank’s earnings release this morning:
An Earnings Beat
Wells Fargo came out with adjusted earnings per share of $1.00, beating the Zacks Consensus Estimate of 97 cents.
Higher net interest income was primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Wells Fargo depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.
Also, Wells Fargo has a decent earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.01% in the trailing four quarters.
Wells Fargo posted revenues of $22 billion, lagging the Zacks Consensus Estimate of $22.1 billion. Also, it was lower than the year-ago number.
Key Stats to Note:
Pre-tax pre-provision profit (PTPP): $8.2 billion
ROA (net income to average assets): 1.15%
ROE (net income applicable to common stock to shareholders’ equity): 11.54%
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Wells Fargo. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Following the earnings release, Wells Fargo shares were down around 1.2% in the pre-trading session. This is in line to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Wells Fargo earnings report later!
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Wells Fargo (WFC) Beats on Q1 Earnings, Revenue Falls Y/Y
Have you been eager to see how Wells Fargo & Company (WFC - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based money center bank’s earnings release this morning:
An Earnings Beat
Wells Fargo came out with adjusted earnings per share of $1.00, beating the Zacks Consensus Estimate of 97 cents.
Higher net interest income was primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Wells Fargo depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.
Also, Wells Fargo has a decent earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.01% in the trailing four quarters.
Wells Fargo & Company Price and EPS Surprise
Wells Fargo & Company Price and EPS Surprise | Wells Fargo & Company Quote
Revenue Came In Lower Than Expected
Wells Fargo posted revenues of $22 billion, lagging the Zacks Consensus Estimate of $22.1 billion. Also, it was lower than the year-ago number.
Key Stats to Note:
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Wells Fargo. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, Wells Fargo shares were down around 1.2% in the pre-trading session. This is in line to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Wells Fargo earnings report later!
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>