Have you been eager to see how Wells Fargo & Company (WFC) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based money center bank’s earnings release this morning:
Earnings Meeting Expectations
Wells Fargo came out with earnings per share of $1.04, beating the Zacks Consensus Estimate of 98 cents.
Results reflected top line improvement, partially offset by higher expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Wells Fargo depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved up 1 % over the last 7 days.
Revenue Came In Higher Than Expected
Wells Fargo posted revenues of $21.3 billion in the quarter, surpassing the Zacks Consensus Estimate of $21.1 billion. Also, it compared favorably with the year-ago number of $20.6 billion.
Key Stats to Note:
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Pre-tax pre-provision profit (PTPP) : $8.8 billion
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ROA (net income to average assets) : 1.38%
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ROE (net income applicable to common stock to shareholders’ equity): 13.17%
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Wells Fargo. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.
How the Market Reacted So Far
Following the earnings release, Wells Fargo shares were down 0.9% in the pre-trading session. This is in contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Wells Fargo earnings report later!
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