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Wells Fargo & Company (WFC), headquartered in San Francisco, California, is a leading financial services company with approximately $1.9 trillion in assets. Valued at $207.05 billion by market cap, the company provides a diversified set of banking, investment, mortgage products and services, and consumer and commercial finance. The banking major is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Friday, July 12.
Ahead of the event, analysts expect WFC to report a profit of $1.26 per share on a diluted basis, up 0.8% from $1.25 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, WFC’s profits declined year over year due to reduced loans and regulatory shifts.
For fiscal 2024, analysts expect WFC to report EPS of $5.13, down 0.8% from $5.17 in fiscal 2023.
WFC stock has outperformed the S&P 500’s ($SPX) 14.8% returns on a YTD basis, with its shares gaining 23.1% during this period. Also, it has outshined the US Financial Services iShares ETF’s (IYG) 9.5% gains over the same time frame.
On Jun. 11, WFC shares fell more than 2% after Pimco said it expects more regional bank failures in the U.S. because of a greater concentration of commercial real estate (CRE) loans on their books.
On Apr. 12, WFC reported its Q1 results. Its adjusted EPS was $1.26, beating the consensus estimate of $1.10. Its revenue, net of interest expense, was $20.86 billion, higher than the Wall Street estimates of $20.16 billion. The company’s net interest income of $12.23 billion fell 8% year over year. WFC shares closed down marginally on the day the results were released but have been on an uptrend since then.
WFC’s overall performance can be attributed to the termination of a consent order by the Office of the Comptroller of the Currency that was in place since September 2016.
Analysts’ consensus opinion on WFC stock is bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 12 advise a “Strong Buy” rating, and 14 suggest a “Hold.”
The average analyst price target for WFC is $61.71, indicating a marginal potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
