S&P 500 (NYSE:SPY) component Wells Fargo & Co. (NYSE:WFC) reported its results for the second quarter. Wells Fargo & Company provides financial services in mainly wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance.
Wells Fargo Earnings Cheat Sheet for the Second Quarter
Results: Net income for Wells Fargo & Co. rose to $3.95 billion (70 cents per share) vs. $3.06 billion (55 cents per share) in the same quarter a year earlier. This marks a rise of 28.9% from the year earlier quarter.
Revenue: Noninterest income was $9.71 billion last quarter.
Actual vs. Wall St. Expectations: WFC beat the mean analyst estimate of 69 cents per share.
Quoting Management: “Our business fundamentals were strong with increased revenues, loans and deposits, lower operating costs, improved credit quality and higher capital levels,” said Chairman and CEO John Stumpf. “While the economic recovery continues to be slower than expected, there are signs that businesses are investing for growth, and we’re here to help them. We’re enjoying strong loyalty and market share growth as we continue to focus on helping our customers emerge from the economic downturn. We’re right on track with our integration, having converted 2,215 Wachovia stores to date, including most recently one of our largest East Coast states, Florida. We continue to be focused on building and managing our diversified company for the long-term benefit of our team members, customers, shareholders and communities and feel we are very well positioned to capture future growth opportunities.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 47.6% and in the fourth quarter of the last fiscal year, the figure rose 20.9%.
The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 67 cents per share.
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).
(Source: Xignite Financials)