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Here's What Key Metrics Tell Us About Wells Fargo (WFC) Q4 Earnings
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Wells Fargo (WFC - Free Report) reported $20.38 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 0.5%. EPS of $1.42 for the same period compares to $1.29 a year ago.
The reported revenue represents a surprise of -0.85% over the Zacks Consensus Estimate of $20.55 billion. With the consensus EPS estimate being $1.34, the EPS surprise was +5.97%.
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.
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 interest-earning assets: $1,756.36 billion versus $1,754.22 billion estimated by six analysts on average.
Net interest margin on a taxable-equivalent basis: 2.7% versus the six-analyst average estimate of 2.7%.
Return on assets (ROA) - Financial Ratios: 1.1% compared to the 1.1% average estimate based on six analysts.
Net loan charge-offs as a % of average total loans (annualized): 0.5% versus 0.5% estimated by six analysts on average.
Return on equity (ROE) - Financial Ratios: 11.7% versus the six-analyst average estimate of 10.9%.
Book value per common share: $48.85 versus the six-analyst average estimate of $49.65.
Total nonperforming assets: $7.94 billion versus the five-analyst average estimate of $8.66 billion.
Efficiency Ratio: 66% versus 65.1% estimated by five analysts on average.
Net loan charge-offs: $1.21 billion compared to the $1.23 billion average estimate based on five analysts.
Total nonaccrual loans: $7.73 billion versus $8.51 billion estimated by four analysts on average.
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) - Standardized Approach: 12.4% compared to the 11.3% average estimate based on three analysts.
Shares of Wells Fargo have returned +0.5% over the past month versus the Zacks S&P 500 composite's -3.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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Here's What Key Metrics Tell Us About Wells Fargo (WFC) Q4 Earnings
Wells Fargo (WFC - Free Report) reported $20.38 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 0.5%. EPS of $1.42 for the same period compares to $1.29 a year ago.
The reported revenue represents a surprise of -0.85% over the Zacks Consensus Estimate of $20.55 billion. With the consensus EPS estimate being $1.34, the EPS surprise was +5.97%.
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.
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 interest-earning assets: $1,756.36 billion versus $1,754.22 billion estimated by six analysts on average.
- Net interest margin on a taxable-equivalent basis: 2.7% versus the six-analyst average estimate of 2.7%.
- Return on assets (ROA) - Financial Ratios: 1.1% compared to the 1.1% average estimate based on six analysts.
- Net loan charge-offs as a % of average total loans (annualized): 0.5% versus 0.5% estimated by six analysts on average.
- Return on equity (ROE) - Financial Ratios: 11.7% versus the six-analyst average estimate of 10.9%.
- Book value per common share: $48.85 versus the six-analyst average estimate of $49.65.
- Total nonperforming assets: $7.94 billion versus the five-analyst average estimate of $8.66 billion.
- Efficiency Ratio: 66% versus 65.1% estimated by five analysts on average.
- Net loan charge-offs: $1.21 billion compared to the $1.23 billion average estimate based on five analysts.
- Total nonaccrual loans: $7.73 billion versus $8.51 billion estimated by four analysts on average.
- 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) - Standardized Approach: 12.4% compared to the 11.3% average estimate based on three analysts.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned +0.5% over the past month versus the Zacks S&P 500 composite's -3.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.