Wells Fargo Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Wells Fargo & Company (NYSE:WFC) will unveil its latest earnings on Tuesday, July 19, 2011. Wells Fargo & Company provides financial services in mainly wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance.

Wells Fargo & Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 69 cents per share, a rise of 25.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down, but has risen from 68 cents during the last month. For the year, analysts are projecting profit of $2.77 per share, a rise of 22.6% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported net income of 67 cents per share versus a mean estimate of profit of 67 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $20.4 billion in revenue this quarter, a decline of 4.6% from the year ago quarter. Analysts are forecasting total revenue of $81.79 billion for the year, a decline of 4% from last year’s revenue of $85.21 billion.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, two rating it as a sell and six rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 47.6% while it rose 20.9% in the fourth quarter of the last fiscal year and 3.2% in the third quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 5.8% to $22.15 billion in first quarter. The figure fell 6% in the fourth quarter of the last fiscal year from the year earlier, dropped 7.5% in third quarter of the last fiscal year from the year-ago quarter and 6.5% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had fallen $2.24 (-7.5%) from $29.77 to $27.53. The stock price saw one of its best stretches over the last year between August 9, 2010, and August 17, 2010, when shares rose for seven-straight days, rising 11.4% (+$2.87) over that span. Shares have been on a negative streak of late, closing down every day between July 12, 2011 and July 13, 2011. Shares are down $3.29 (-10.7%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!