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Wells Fargo (WFC) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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Wells Fargo (WFC - Free Report) reported $20.53 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 20.6%. EPS of $1.25 for the same period compares to $0.74 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.27 billion, representing a surprise of +1.28%. The company delivered an EPS surprise of +8.70%, with the consensus EPS estimate being $1.15.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Wells Fargo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Balance - Total earning assets: $1,719.71 billion compared to the $1,698.19 billion average estimate based on seven analysts.
Return on average equity (ROE): 11.4% compared to the 10.36% average estimate based on seven analysts.
Net interest margin on a taxable-equivalent basis: 3.09% compared to the 3.06% average estimate based on seven analysts.
Book value Per common share: $43.87 versus $44 estimated by seven analysts on average.
Efficiency Ratio: 64% versus the six-analyst average estimate of 64.9%.
Return on average assets (ROA): 1.05% versus 0.96% estimated by six analysts on average.
Net loan charge-offs as a % of average total loans: 0.32% versus the six-analyst average estimate of 0.3%.
Total nonperforming assets: $7.02 billion versus $6.46 billion estimated by five analysts on average.
Total nonaccrual loans: $6.89 billion versus $6.39 billion estimated by four analysts on average.
Total net loan charge-offs: $764 million compared to the $681.21 million average estimate based on four analysts.
Common Equity Tier 1 (CET1): 10.7% versus 10.73% estimated by three analysts on average.
Tier 1 Leverage Ratio: 8.3% versus the three-analyst average estimate of 8.41%.
Shares of Wells Fargo have returned +3.2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Wells Fargo (WFC) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Wells Fargo (WFC - Free Report) reported $20.53 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 20.6%. EPS of $1.25 for the same period compares to $0.74 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.27 billion, representing a surprise of +1.28%. The company delivered an EPS surprise of +8.70%, with the consensus EPS estimate being $1.15.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Wells Fargo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average Balance - Total earning assets: $1,719.71 billion compared to the $1,698.19 billion average estimate based on seven analysts.
- Return on average equity (ROE): 11.4% compared to the 10.36% average estimate based on seven analysts.
- Net interest margin on a taxable-equivalent basis: 3.09% compared to the 3.06% average estimate based on seven analysts.
- Book value Per common share: $43.87 versus $44 estimated by seven analysts on average.
- Efficiency Ratio: 64% versus the six-analyst average estimate of 64.9%.
- Return on average assets (ROA): 1.05% versus 0.96% estimated by six analysts on average.
- Net loan charge-offs as a % of average total loans: 0.32% versus the six-analyst average estimate of 0.3%.
- Total nonperforming assets: $7.02 billion versus $6.46 billion estimated by five analysts on average.
- Total nonaccrual loans: $6.89 billion versus $6.39 billion estimated by four analysts on average.
- Total net loan charge-offs: $764 million compared to the $681.21 million average estimate based on four analysts.
- Common Equity Tier 1 (CET1): 10.7% versus 10.73% estimated by three analysts on average.
- Tier 1 Leverage Ratio: 8.3% versus the three-analyst average estimate of 8.41%.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned +3.2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.