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San Francisco, California-based Wells Fargo & Company (WFC) is a financial services company that provides diversified banking, investment, mortgage, and consumer and commercial finance products and services. Valued at a market cap of $236.8 billion, the company serves physical stores, the internet, and other distribution channels worldwide. The leading financial services company is expected to announce its fiscal fourth-quarter and FY2024 earnings on Friday, Jan. 10.
Ahead of the event, analysts expect WFC to report a profit of $1.33 per share on a diluted basis, up 3.1% from $1.29 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
WFC beat the earnings consensus estimate by 19.7% in the previous quarter, driven by lower-than-anticipated provisions for potential loan losses and a forecast that interest income would stabilize.
For the current year 2024, analysts expect WFC to report EPS of $5.44, up 5.2% from $5.17 in fiscal 2023. Its fiscal 2025 EPS is likely to rise marginally year over year to $5.49.
WFC stock has climbed 43.1% over the past 52 weeks, outperforming the S&P 500’s ($SPX) 23.8% gains and the S&P 500 Financials Sector SPDR’s (XLF) 28.4% gains over the same time frame.
Wells Fargo's strong performance over the past year stems from its expanded API portfolio, enhancing data transfer and order processing for commercial clients. Additionally, Federal Reserve rate cuts are expected to boost its net interest income.
Wells Fargo's shares surged 17.3% in November, outpacing major peers, as investor optimism grew following Donald Trump's election and Republican majorities in Congress. Anticipation of regulatory relief, including eased capital requirements and less opposition to mergers and acquisitions, bolstered sentiment. Additionally, expectations for sustained low corporate tax rates under the 2017 Tax Cuts and Jobs Act contributed to the rally.
Analysts’ consensus opinion on WFC stock is moderately optimistic, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and nine give a “Hold.”
The current consensus is slightly more bullish than three months ago, with 13 “Strong Buy.”
WFC’s average analyst price target is $74.52, indicating a potential upside of 5.8% from the current price levels.
