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Wells Fargo (WFC) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
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Analysts on Wall Street project that Wells Fargo (WFC - Free Report) will announce quarterly earnings of $1.85 per share in its forthcoming report, representing an increase of 6.9% year over year. Revenues are projected to reach $22.15 billion, increasing 3.3% from the same quarter last year.
The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Wells Fargo metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Average Balance - Total interest-earning assets' stands at $2089.78 billion. Compared to the current estimate, the company reported $1832.51 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Book value per common share' should come in at $54.96 . Compared to the current estimate, the company reported $52.30 in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Return on equity (ROE) - Financial Ratios' should arrive at 13.5%. The estimate compares to the year-ago value of 12.8%.
Analysts predict that the 'Efficiency Ratio' will reach 62.5%. Compared to the current estimate, the company reported 65.0% in the same quarter of the previous year.
Analysts forecast 'Total nonperforming assets' to reach $8.47 billion. The estimate compares to the year-ago value of $7.83 billion.
The average prediction of analysts places 'Total nonaccrual loans' at $8.17 billion. Compared to the present estimate, the company reported $7.61 billion in the same quarter last year.
Analysts expect 'Net loan charge-offs' to come in at $985.61 million. The estimate compares to the year-ago value of $942.00 million.
The consensus among analysts is that 'Common Equity Tier 1 (CET1) - Standardized Approach' will reach 10.1%. The estimate compares to the year-ago value of 11.0%.
The combined assessment of analysts suggests that 'Tier 1 Leverage Ratio' will likely reach 6.8%. The estimate compares to the year-ago value of 7.7%.
It is projected by analysts that the 'Tier 1 Capital Ratio - Standardized Approach' will reach 11.3%. Compared to the present estimate, the company reported 12.3% in the same quarter last year.
Analysts' assessment points toward 'Net Interest Income' reaching $12.63 billion. The estimate compares to the year-ago value of $11.95 billion.
The collective assessment of analysts points to an estimated 'Total Noninterest Income' of $9.59 billion. The estimate compares to the year-ago value of $9.49 billion.
Over the past month, shares of Wells Fargo have returned -10.5% versus the Zacks S&P 500 composite's +1.4% change. Currently, WFC carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Wells Fargo (WFC) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
Analysts on Wall Street project that Wells Fargo (WFC - Free Report) will announce quarterly earnings of $1.85 per share in its forthcoming report, representing an increase of 6.9% year over year. Revenues are projected to reach $22.15 billion, increasing 3.3% from the same quarter last year.
The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Wells Fargo metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Average Balance - Total interest-earning assets' stands at $2089.78 billion. Compared to the current estimate, the company reported $1832.51 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Book value per common share' should come in at $54.96 . Compared to the current estimate, the company reported $52.30 in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Return on equity (ROE) - Financial Ratios' should arrive at 13.5%. The estimate compares to the year-ago value of 12.8%.
Analysts predict that the 'Efficiency Ratio' will reach 62.5%. Compared to the current estimate, the company reported 65.0% in the same quarter of the previous year.
Analysts forecast 'Total nonperforming assets' to reach $8.47 billion. The estimate compares to the year-ago value of $7.83 billion.
The average prediction of analysts places 'Total nonaccrual loans' at $8.17 billion. Compared to the present estimate, the company reported $7.61 billion in the same quarter last year.
Analysts expect 'Net loan charge-offs' to come in at $985.61 million. The estimate compares to the year-ago value of $942.00 million.
The consensus among analysts is that 'Common Equity Tier 1 (CET1) - Standardized Approach' will reach 10.1%. The estimate compares to the year-ago value of 11.0%.
The combined assessment of analysts suggests that 'Tier 1 Leverage Ratio' will likely reach 6.8%. The estimate compares to the year-ago value of 7.7%.
It is projected by analysts that the 'Tier 1 Capital Ratio - Standardized Approach' will reach 11.3%. Compared to the present estimate, the company reported 12.3% in the same quarter last year.
Analysts' assessment points toward 'Net Interest Income' reaching $12.63 billion. The estimate compares to the year-ago value of $11.95 billion.
The collective assessment of analysts points to an estimated 'Total Noninterest Income' of $9.59 billion. The estimate compares to the year-ago value of $9.49 billion.
View all Key Company Metrics for Wells Fargo here>>>Over the past month, shares of Wells Fargo have returned -10.5% versus the Zacks S&P 500 composite's +1.4% change. Currently, WFC carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .