S&P 500 (NYSE:SPY) component Wells Fargo & Co. (NYSE:WFC) reported its results for the first quarter. Wells Fargo provides financial services in mainly wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance.
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Wells Fargo Earnings Cheat Sheet for the First Quarter
Results: Net income for the banks-major regional rose to $4.25 billion (75 cents per share) vs. $3.76 billion (67 cents per share) in the same quarter a year earlier. This marks a rise of 14% from the year-earlier quarter.
Revenue: Revenue was $21.64 billion last quarter.
Actual vs. Wall St. Expectations: Wells Fargo & Co. beat the mean analyst estimate of 73 cents per share. It beat the average revenue estimate of $20.42 billion.
Quoting Management: “Wells Fargo delivered outstanding first quarter results driven by strong revenue growth. Quarterly revenue was the highest in nine quarters, and we achieved our ninth consecutive quarter of earnings per share growth,” said Chairman and CEO John Stumpf. “Our continued performance for shareholders through a variety of economic environments is a testament to our diversified business model. The performance of our franchise also allowed us to provide our shareholders with an increased common stock dividend for the second consecutive year. As Wells Fargo celebrates its 160th anniversary and successful completion of the Wachovia merger integration, I want to again thank all our team members for helping our customers succeed financially and satisfying all their financial needs-quarter after quarter, year after year.”
The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 20.3% and in the third quarter of the last fiscal year, the figure rose 21.4%.
The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 73 cents versus a mean estimate of net income of 72 cents per share.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 76 cents a share to 80 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $3.18 a share to $3.24 over the last thirty days.
Competitors to Watch: Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., U.S. Bancorp, PNC Financial Services, SunTrust Banks, Inc., KeyCorp, Goldman Sachs Group, Inc., Regions Financial Corp., and Morgan Stanley.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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