Wells Fargo missed Q4 revenue before the bell Tuesday. $WFC reported along with JPMorgan $JPM, Citigroup $C and PNC Financial $PNC. Earnings and the stock have been hampered by seemingly endless scandals and their future rebrand.
Wells Fargo Q4 revenue before the bell Tuesday. $WFC reported along with JPMorgan $JPM, Citigroup $C and PNC Financial $PNC. Earnings and the stock have been hampered by seemingly endless scandals and their future rebrand.
Wells Fargo & Co NYSE: WFC Report Earnings Before Open Tuesday
$1.21 EPS Beat $1.19 BUT $21.00B Missed $21.54 billion forecast in revenue
Wells Fargo & Co. reported Q4 EPS of $1.21 on revenue of $21.0 billion with expected EPS est. $1.19 (range $1.14 to $1.33) on revenues expected of $21.54 billion, down 2.3% from the year-ago quarter. WFC was seen with a 4Q net interest margin est. 2.95%. 4Q net charge-offs are estimated at $736.8m with a 4Q provision for credit losses estimated at $675.4m
Analysts have cut estimates for Goldman, Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley, and Wells Fargo & Co. by an average of 8.1 percent since the last quarter’s earnings reports. Goldman estimates have been slashed by 27 percent.
Wells Fargo & Co NYSE: WFC
Market Reaction Pre-market $47.95 −0.47 (-0.97%)
- Community banking revenue fell 2.2% to $11.46 billion.
- Wholesale banking revenue dropped 7% to $6.93 billion.
- Wealth and investment management revenue dropped 8.7% to $3.96 billion.
- Average deposits fell 3% to $1.27 trillion, and average loans dipped 1% to $946.3 billion.
“We continued to have positive business trends in the fourth quarter with primary consumer checking customers, consumer credit card active accounts, debit and credit card usage, commercial loan balances, and loan originations in auto, small business, home equity and student lending all growing compared with a year ago,” CFO John Shrewsberry said.
Wells Fargo Q3 Earnings Recap
$1.13 Missed $1.18 EPS But $21.9 billion Beat $21.81 billion forecast in revenue
- orts/914-pnc-earnings-grow-with-their-commercial-lending”>PNC Financial $P
Wells Fargo & Co. reports EPS of $1.13 on revenue of $21.9 billion. third-quarter results on Friday with analysts’ consensus estimates of EPS of $1.18 in EPS on revenue of $21.81 billion. Shares of Wells Fargo have a 52-week trading range is $50.26 to $66.31.
Wells Fargo & Co NYSE: WFC
Market Reaction Pre-market $52.47 +1.03 (+2.00%)
- Net interest income edged up 1% to $12.6 billion.
- Community banking revenue rose 2.6% to $11.82 billion
- Mortgage banking was weak
- Wholesale banking revenue fell 2.7% to $7.3 billion.
- Wealth management revenue fell less than 1% to $4.23 billion.
- Average deposits down 3% at $1.3 trillion
- Average loans down 1% at $939.5 billion.
“We saw positive business trends in the third quarter, including growth in primary consumer checking customers, increased debit and credit card usage, and higher year-over-year loan originations in auto, small business, home equity and personal loans and lines,” CFO John Shrewsberry said in a statement.
Wells Fargo is still trying to recover from the fake account scandal surrounding its sales practices, in which employees in its consumer banking division created fake accounts amid a high-pressure sales environment. More issues surrounding the bank’s practices continue to surface. The Fed in February last year barred the bank from growing until it “sufficiently improves its governance and controls.”
Source: WFC, AlphaStreet
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