Wells Fargo & Co. Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component Wells Fargo & Co. (NYSE:WFC) reported its results for the fourth 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 Fourth Quarter.

Results: Net income for the financial services rose to $4.1 billion (73 cents per share) vs. $3.41 billion (61 cents per share) in the same quarter a year earlier. This marks a rise of 20.1% from the year earlier quarter.

Revenue: Revenue was $20.6 billion last quarter.

Actual vs. Wall St. Expectations: WFC beat the mean analyst estimate of 72 cents per share. It beat the average revenue estimate of $20.08 billion.

Quoting Management: “I’m extremely pleased with Wells Fargo’s performance in 2011 – including strong deposit and loan growth, record cross-sell and record earnings,” said Chairman and CEO John Stumpf. “We achieved these results while completing the conversion of Wachovia’s retail banking stores – the largest such conversion in banking history – and now all of our 6,239 retail banking stores are on a single platform serving customers coast to coast. At the time of the merger, we said the integration of Wachovia would take three years and we are right on track. I couldn’t be prouder of how our two companies have come together as one, thanks to the important and tireless work of our more than 260,000 team members.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 21.4% and in the second quarter, the figure rose 28.9%.

The company beat estimates last quarter after being in line with expectations in the third quarter with 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 first quarter of the next fiscal year has moved up from 71 cents a share to 72 cents over the last sixty days. The average estimate for the fiscal year has seen a bump from $2.80 per share sixty days ago to $2.81.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), U.S. Bancorp (NYSE:USB), PNC Financial Services (NYSE:PNC), SunTrust Banks, Inc. (NYSE:STI), KeyCorp (NYSE:KEY), Goldman Sachs Group, Inc. (NYSE:GS), Regions Financial Corp. (NYSE:RF), and Morgan Stanley (NYSE:MS).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com