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Wells Fargo (WFC) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended December 2023, Wells Fargo (WFC - Free Report) reported revenue of $20.48 billion, up 4.2% over the same period last year. EPS came in at $1.29, compared to $0.67 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $20.31 billion, representing a surprise of +0.83%. The company delivered an EPS surprise of +11.21%, with the consensus EPS estimate being $1.16.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: $1,755 billion versus $1,734.18 billion estimated by seven analysts on average.
Efficiency Ratio: 77% compared to the 64.7% average estimate based on seven analysts.
Return on average assets (ROA): 0.7% versus 0.9% estimated by seven analysts on average.
Return on average equity (ROE): 7.6% versus 9.5% estimated by seven analysts on average.
Book value Per common share: $46.25 versus the seven-analyst average estimate of $45.44.
Net interest margin on a taxable-equivalent basis: 2.9% versus 2.9% estimated by seven analysts on average.
Net loan charge-offs as a % of average total loans: 0.5% versus the six-analyst average estimate of 0.4%.
Total nonperforming assets: $8.44 billion compared to the $8.76 billion average estimate based on five analysts.
Total net loan charge-offs: $1.25 billion versus the five-analyst average estimate of $999.93 million.
Total nonaccrual loans: $8.26 billion compared to the $8.51 billion average estimate based on four analysts.
Allowance for loan losses as a percentage of total loans: 1.6% versus 1.6% estimated by four analysts on average.
Common Equity Tier 1 (CET1): 11.4% versus the three-analyst average estimate of 11.2%.
Shares of Wells Fargo have returned -2.9% over the past month versus the Zacks S&P 500 composite's +3.5% 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) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended December 2023, Wells Fargo (WFC - Free Report) reported revenue of $20.48 billion, up 4.2% over the same period last year. EPS came in at $1.29, compared to $0.67 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $20.31 billion, representing a surprise of +0.83%. The company delivered an EPS surprise of +11.21%, with the consensus EPS estimate being $1.16.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: $1,755 billion versus $1,734.18 billion estimated by seven analysts on average.
- Efficiency Ratio: 77% compared to the 64.7% average estimate based on seven analysts.
- Return on average assets (ROA): 0.7% versus 0.9% estimated by seven analysts on average.
- Return on average equity (ROE): 7.6% versus 9.5% estimated by seven analysts on average.
- Book value Per common share: $46.25 versus the seven-analyst average estimate of $45.44.
- Net interest margin on a taxable-equivalent basis: 2.9% versus 2.9% estimated by seven analysts on average.
- Net loan charge-offs as a % of average total loans: 0.5% versus the six-analyst average estimate of 0.4%.
- Total nonperforming assets: $8.44 billion compared to the $8.76 billion average estimate based on five analysts.
- Total net loan charge-offs: $1.25 billion versus the five-analyst average estimate of $999.93 million.
- Total nonaccrual loans: $8.26 billion compared to the $8.51 billion average estimate based on four analysts.
- Allowance for loan losses as a percentage of total loans: 1.6% versus 1.6% estimated by four analysts on average.
- Common Equity Tier 1 (CET1): 11.4% versus the three-analyst average estimate of 11.2%.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned -2.9% over the past month versus the Zacks S&P 500 composite's +3.5% 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.