Wells Fargo Earnings: Everything You Must Know
Wells Fargo & Company (NYSE:WFC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares closed down 0.85%.
Wells Fargo & Company Earnings Cheat Sheet
Results: Net income increased 24.18% to $5.1 billion (91 cents per diluted share) in the quarter versus a net gain of $4.11 billion in the year-earlier quarter.
Revenue: Increased 7% to $21.95 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Wells Fargo & Company reported adjusted net income of 91 cents per share. By that measure, the company beat the mean analyst estimate of $0.89. It beat the average revenue estimate of $21.29 billion…
Quoting Management: Chief Financial Officer Tim Sloan said, “The Company’s underlying results were driven by solid loan growth, improved credit quality, and continued success in improving efficiency. While our fourth quarter included some noteworthy items, we achieved strong returns on average assets and equity of 1.46 percent and 13.35 percent, respectively. We are very pleased with the Company’s outstanding performance despite the challenges our industry faced during this past year, including continued low interest rates and elevated unemployment. Our balanced business model helped us deliver strong results throughout these challenging times and should provide us the opportunity to continue to deliver value to our shareholders in the coming year.”
Revenue decreased 2.34% from $22.48 billion in the previous quarter. Net income increased 3.3% from $4.94 billion in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.87 and has not changed. For the current year, the average estimate has moved up from a profit of $3.33 to a profit of $3.35 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)