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Wells Fargo (WFC) Reports Q3 Earnings: What Key Metrics Have to Say
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Wells Fargo (WFC - Free Report) reported $20.86 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 6.9%. EPS of $1.39 for the same period compares to $1.30 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.21 billion, representing a surprise of +3.18%. The company delivered an EPS surprise of +11.20%, with the consensus EPS estimate being $1.25.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Wells Fargo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Balance - Total earning assets: $1,733.08 billion compared to the $1,710.47 billion average estimate based on seven analysts.
Return on average equity (ROE): 13.3% compared to the 11.3% average estimate based on seven analysts.
Net interest margin on a taxable-equivalent basis: 3% versus 3% estimated by seven analysts on average.
Book value Per common share: $44.37 versus the seven-analyst average estimate of $44.69.
Efficiency Ratio: 63% versus the six-analyst average estimate of 63.8%.
Return on average assets (ROA): 1.2% compared to the 1% average estimate based on six analysts.
Net loan charge-offs as a % of average total loans: 0.4% versus 0.4% estimated by six analysts on average.
Total nonperforming assets: $8.18 billion compared to the $7.33 billion average estimate based on five analysts.
Total nonaccrual loans: $8 billion versus $7.27 billion estimated by four analysts on average.
Total net loan charge-offs: $850 million versus the four-analyst average estimate of $837.48 million.
Common Equity Tier 1 (CET1): 11% compared to the 10.7% average estimate based on three analysts.
Tier 1 Leverage Ratio: 8.3% versus the three-analyst average estimate of 8.3%.
Shares of Wells Fargo have returned -7.7% over the past month versus the Zacks S&P 500 composite's -2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Wells Fargo (WFC) Reports Q3 Earnings: What Key Metrics Have to Say
Wells Fargo (WFC - Free Report) reported $20.86 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 6.9%. EPS of $1.39 for the same period compares to $1.30 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.21 billion, representing a surprise of +3.18%. The company delivered an EPS surprise of +11.20%, with the consensus EPS estimate being $1.25.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Wells Fargo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average Balance - Total earning assets: $1,733.08 billion compared to the $1,710.47 billion average estimate based on seven analysts.
- Return on average equity (ROE): 13.3% compared to the 11.3% average estimate based on seven analysts.
- Net interest margin on a taxable-equivalent basis: 3% versus 3% estimated by seven analysts on average.
- Book value Per common share: $44.37 versus the seven-analyst average estimate of $44.69.
- Efficiency Ratio: 63% versus the six-analyst average estimate of 63.8%.
- Return on average assets (ROA): 1.2% compared to the 1% average estimate based on six analysts.
- Net loan charge-offs as a % of average total loans: 0.4% versus 0.4% estimated by six analysts on average.
- Total nonperforming assets: $8.18 billion compared to the $7.33 billion average estimate based on five analysts.
- Total nonaccrual loans: $8 billion versus $7.27 billion estimated by four analysts on average.
- Total net loan charge-offs: $850 million versus the four-analyst average estimate of $837.48 million.
- Common Equity Tier 1 (CET1): 11% compared to the 10.7% average estimate based on three analysts.
- Tier 1 Leverage Ratio: 8.3% versus the three-analyst average estimate of 8.3%.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned -7.7% over the past month versus the Zacks S&P 500 composite's -2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.