S&P 500 (NYSE:SPY) component Wells Fargo (NYSE:WFC) will unveil its latest earnings on Friday, October 12, 2012. Wells Fargo provides financial services in mainly wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance.
Wells Fargo Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 87 cents per share, a rise of 20.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 84 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 87 cents during the last month. For the year, analysts are projecting profit of $3.33 per share, a rise of 18.1% from last year.
Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 82 cents per share versus a mean estimate of profit of 81 cents per share.
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A Look Back: In the second quarter, profit rose 17.1% to $4.62 billion (82 cents a share) from $3.95 billion (70 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.3% to $22.61 billion from $22.09 billion.
Wall St. Revenue Expectations: Analysts predict a rise of 9.3% in revenue from the year-earlier quarter to $21.45 billion.
Stock Price Performance: Between August 10, 2012 and October 8, 2012, the stock price had risen $1.97 (5.8%), from $33.83 to $35.80. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 6.4% (+$1.97) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 7.1% (-$2.37) over that span.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 20.3% in the fourth quarter of the last fiscal year and 13% in the first quarter before increasing again in the second quarter.
On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 3.9% in the first quarter before climbing again in the second quarter.
Analyst Ratings: With 20 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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