Wells Fargo & Earnings: Here’s Why Investors Don’t Like These Results

Wells Fargo & Company (NYSE:WFC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.64%.

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Wells Fargo & Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.67% to $0.92 in the quarter versus EPS of $0.75 in the year-earlier quarter.

Revenue: Decreased 7.58% to $21.26 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wells Fargo & Company reported adjusted EPS income of $0.92 per share. By that measure, the company beat the mean analyst estimate of $0.88. It missed the average revenue estimate of $21.6 billion.

Quoting Management: “With this new store concept, we’ll be able to offer person to person sales and service along with leading banking technology in settings that previously would have discouraged us from building a store,” said Jonathan Velline, head of Wells Fargo ATM Banking and Store Strategy. “Stores are central to our strategy of providing excellent service and meeting our customers’ financial needs. This new neighborhood bank concept complements our traditional stores to help us bring the Wells Fargo store experience to more customers.”

Key Stats (on next page)…

Revenue decreased 8.22% from $23.16 billion in the previous quarter. EPS decreased 0% from $0.92 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.9 to a profit $0.92. For the current year, the average estimate has moved up from a profit of $3.61 to a profit of $3.65 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)