Falling revenue did not prevent S&P 500 (NYSE:SPY) component Wells Fargo & Co. (NYSE:WFC) from reporting a profit boost in the first 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 First Quarter
Results: Net income for Wells Fargo & Co. rose to $3.76 billion (67 cents/share) vs. $2.55 billion 45 cents/share) YoY. A rise of 47.6% from the year earlier quarter.
Revenue: Fell 13.6% to $20.33 billion YoY.
Actual vs. Wall St. Expectations: WFC beat the mean analyst estimate of 66 cents/share. Estimates ranged from 60 cents per share to 81 cents per share.
Quoting Management: “Our strong first quarter results reflected positive trends in our business fundamentals as credit quality improved, capital ratios increased and cross-selling reached new highs,” said Chairman and CEO John Stumpf. “As the economy continued an uneven recovery, our business customers increased borrowing and utilization of credit lines – a hopeful sign that businesses are once again investing for growth. Consumers continue to be hesitant to borrow, yet our robust deposit growth reflects the strong loyalty and market share we enjoy among customers. We also marked an historic return of the Wells Fargo name to the New York market as we celebrated our 159th anniversary and converted banking stores in Connecticut, Delaware, New Jersey and New York during the quarter. Our Pennsylvania banking stores were converted successfully this past weekend and we expect to convert all remaining Wachovia stores by the end of this 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 20.9% and in the third quarter of the last fiscal year, the figure rose 3.2%.
Competitors to Watch: Bank of America Corporation (NYSE:BAC), Citigroup, Inc. (NYSE:C), U.S. Bancorp (NYSE:USB), PNC Financial (NYSE:PNC), SunTrust (NYSE:STI), Keycorp (NYSE:KEY), Goldman Sachs (NYSE:GS), Regions Financial (NYSE:RF), Comerica (NYSE:CMA) and JPMorgan Chase & Co. (NYSE:JPM).
Today’s Performance: Shares of WFC are trading at $28.59 as of April 20, 2011 at 1:25 PM ET, down 4.9% from the previous closing price of $30.07.