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Wells Fargo (WFC) Reports Q1 Earnings: What Key Metrics Have to Say
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Wells Fargo (WFC - Free Report) reported $20.86 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 0.7%. EPS of $1.26 for the same period compares to $1.23 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.16 billion, representing a surprise of +3.47%. The company delivered an EPS surprise of +14.55%, with the consensus EPS estimate being $1.10.
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: $1,758.40 billion versus $1,756.22 billion estimated by seven analysts on average.
Return on average assets (ROA): 1% compared to the 0.9% average estimate based on seven analysts.
Return on average equity (ROE): 10.5% versus the seven-analyst average estimate of 9.3%.
Book value Per common share: $46.40 versus the seven-analyst average estimate of $46.73.
Net interest margin on a taxable-equivalent basis: 2.8% versus 2.8% estimated by seven analysts on average.
Efficiency Ratio: 69% versus the six-analyst average estimate of 67.6%.
Net loan charge-offs as a % of average total loans: 0.5% versus the six-analyst average estimate of 0.5%.
Total nonperforming assets: $8.24 billion versus the five-analyst average estimate of $8.87 billion.
Total net loan charge-offs: $1.15 billion versus $1.20 billion estimated by five analysts on average.
Total nonaccrual loans: $8.08 billion compared to the $8.79 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): 11.2% versus the three-analyst average estimate of 11.3%.
Shares of Wells Fargo have returned -1.2% over the past month versus the Zacks S&P 500 composite's +1.6% 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) Reports Q1 Earnings: What Key Metrics Have to Say
Wells Fargo (WFC - Free Report) reported $20.86 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 0.7%. EPS of $1.26 for the same period compares to $1.23 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.16 billion, representing a surprise of +3.47%. The company delivered an EPS surprise of +14.55%, with the consensus EPS estimate being $1.10.
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: $1,758.40 billion versus $1,756.22 billion estimated by seven analysts on average.
- Return on average assets (ROA): 1% compared to the 0.9% average estimate based on seven analysts.
- Return on average equity (ROE): 10.5% versus the seven-analyst average estimate of 9.3%.
- Book value Per common share: $46.40 versus the seven-analyst average estimate of $46.73.
- Net interest margin on a taxable-equivalent basis: 2.8% versus 2.8% estimated by seven analysts on average.
- Efficiency Ratio: 69% versus the six-analyst average estimate of 67.6%.
- Net loan charge-offs as a % of average total loans: 0.5% versus the six-analyst average estimate of 0.5%.
- Total nonperforming assets: $8.24 billion versus the five-analyst average estimate of $8.87 billion.
- Total net loan charge-offs: $1.15 billion versus $1.20 billion estimated by five analysts on average.
- Total nonaccrual loans: $8.08 billion compared to the $8.79 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): 11.2% versus the three-analyst average estimate of 11.3%.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned -1.2% over the past month versus the Zacks S&P 500 composite's +1.6% 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.