Wells Fargo Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Wells Fargo (NYSE:WFC) will unveil its latest earnings on Friday, January 11, 2013. Wells Fargo provides financial services in mainly wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance.

Wells Fargo Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 89 cents per share, a rise of 21.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 88 cents. Between one and three months ago, the average estimate moved up. It has dropped from 90 cents during the last month. Analysts are projecting profit to rise by 18.8% compared to last year’s $3.35.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 88 cents per share against a mean estimate of profit of 87 cents per share.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the third quarter, profit rose 21.8% to $4.94 billion (88 cents a share) from $4.05 billion (72 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.7% to $22.48 billion from $21.26 billion.

Stock Price Performance: Between November 7, 2012 and January 7, 2013, the stock price had risen $1.86 (5.7%), from $32.91 to $34.77. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 6.4% (+$1.97) over that span. It saw one of its worst periods between December 20, 2012 and December 28, 2012 when shares fell for six straight days, dropping 3.2% (-$1.13) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 3.3% in revenue from the year-earlier quarter to $21.29 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 13% in the first quarter and 17.1% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 3.9% in the first quarter and 2.3% in the second quarter before climbing again in the third quarter.

Analyst Ratings: With 17 analysts rating the stock a buy, one rating it a sell and nine rating the stock a hold, there are indications of a bullish stance by analysts.

Here’s how Wells Fargo is trading ahead of its upcoming earnings release:

Screen Shot 2013-01-09 at 7.07.43 PM

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Is The U.S. Debt Ceiling Really A Debt Target

Is Apple Slowly Rotting Away?

Are the Dogs of the Dow Getting Revenge?