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Here's What Key Metrics Tell Us About Wells Fargo (WFC) Q1 Earnings
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For the quarter ended March 2025, Wells Fargo (WFC - Free Report) reported revenue of $20.15 billion, down 3.4% over the same period last year. EPS came in at $1.27, compared to $1.26 in the year-ago quarter.
The reported revenue represents a surprise of -3.12% over the Zacks Consensus Estimate of $20.8 billion. With the consensus EPS estimate being $1.23, the EPS surprise was +3.25%.
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.
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:
Return on assets (ROA) - Financial Ratios: 1% compared to the 0.9% average estimate based on seven analysts.
Net loan charge-offs as a % of average total loans (annualized): 0.5% compared to the 0.5% average estimate based on seven analysts.
Net interest margin on a taxable-equivalent basis: 2.7% compared to the 2.7% average estimate based on seven analysts.
Average Balance - Total interest-earning assets: $1,752.32 billion versus $1,763.56 billion estimated by six analysts on average.
Efficiency Ratio: 69% compared to the 67.8% average estimate based on six analysts.
Return on equity (ROE) - Financial Ratios: 11.5% versus the six-analyst average estimate of 10.1%.
Book value per common share: $49.86 versus $49.56 estimated by six analysts on average.
Allowance for loan losses as a percentage of total loans: 1.5% versus 1.6% estimated by five analysts on average.
Total nonperforming assets: $8.23 billion versus the five-analyst average estimate of $8.07 billion.
Net loan charge-offs: $1.01 billion versus $1.22 billion estimated by five analysts on average.
Tier 1 Leverage Ratio: 8.1% versus 8.2% estimated by four analysts on average.
Total nonaccrual loans: $7.98 billion compared to the $7.90 billion average estimate based on four analysts.
Shares of Wells Fargo have returned -7.8% over the past month versus the Zacks S&P 500 composite's -6.1% 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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Here's What Key Metrics Tell Us About Wells Fargo (WFC) Q1 Earnings
For the quarter ended March 2025, Wells Fargo (WFC - Free Report) reported revenue of $20.15 billion, down 3.4% over the same period last year. EPS came in at $1.27, compared to $1.26 in the year-ago quarter.
The reported revenue represents a surprise of -3.12% over the Zacks Consensus Estimate of $20.8 billion. With the consensus EPS estimate being $1.23, the EPS surprise was +3.25%.
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.
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:
- Return on assets (ROA) - Financial Ratios: 1% compared to the 0.9% average estimate based on seven analysts.
- Net loan charge-offs as a % of average total loans (annualized): 0.5% compared to the 0.5% average estimate based on seven analysts.
- Net interest margin on a taxable-equivalent basis: 2.7% compared to the 2.7% average estimate based on seven analysts.
- Average Balance - Total interest-earning assets: $1,752.32 billion versus $1,763.56 billion estimated by six analysts on average.
- Efficiency Ratio: 69% compared to the 67.8% average estimate based on six analysts.
- Return on equity (ROE) - Financial Ratios: 11.5% versus the six-analyst average estimate of 10.1%.
- Book value per common share: $49.86 versus $49.56 estimated by six analysts on average.
- Allowance for loan losses as a percentage of total loans: 1.5% versus 1.6% estimated by five analysts on average.
- Total nonperforming assets: $8.23 billion versus the five-analyst average estimate of $8.07 billion.
- Net loan charge-offs: $1.01 billion versus $1.22 billion estimated by five analysts on average.
- Tier 1 Leverage Ratio: 8.1% versus 8.2% estimated by four analysts on average.
- Total nonaccrual loans: $7.98 billion compared to the $7.90 billion average estimate based on four analysts.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned -7.8% over the past month versus the Zacks S&P 500 composite's -6.1% 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.