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Wells Fargo (WFC) Reports Q2 Earnings: What Key Metrics Have to Say
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Wells Fargo (WFC - Free Report) reported $20.69 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 0.8%. EPS of $1.33 for the same period compares to $1.25 a year ago.
The reported revenue represents a surprise of +2.05% over the Zacks Consensus Estimate of $20.27 billion. With the consensus EPS estimate being $1.27, the EPS surprise was +4.72%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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 interest-earning assets: $1,755.98 billion compared to the $1,727.53 billion average estimate based on seven analysts.
Efficiency Ratio: 64% versus the seven-analyst average estimate of 64.5%.
Return on assets (ROA) - Financial Ratios: 1% compared to the 1% average estimate based on seven analysts.
Return on equity (ROE) - Financial Ratios: 11.5% compared to the 10.8% average estimate based on seven analysts.
Book value per common share: $47.01 versus the seven-analyst average estimate of $47.08.
Net interest margin on a taxable-equivalent basis: 2.8% compared to the 2.8% average estimate based on seven analysts.
Net loan charge-offs as a % of average total loans: 0.6% versus 0.5% estimated by six analysts on average.
Total nonperforming assets: $8.65 billion versus $8.91 billion estimated by five analysts on average.
Total net loan charge-offs: $1.30 billion versus the five-analyst average estimate of $1.27 billion.
Total nonaccrual loans: $8.43 billion versus the four-analyst average estimate of $8.91 billion.
Allowance for loan losses as a percentage of total loans: 1.6% compared to the 1.6% average estimate based on four analysts.
Common Equity Tier 1 (CET1) - Standardized Approach: 11% compared to the 11.1% average estimate based on three analysts.
Shares of Wells Fargo have returned +5.1% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Wells Fargo (WFC) Reports Q2 Earnings: What Key Metrics Have to Say
Wells Fargo (WFC - Free Report) reported $20.69 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 0.8%. EPS of $1.33 for the same period compares to $1.25 a year ago.
The reported revenue represents a surprise of +2.05% over the Zacks Consensus Estimate of $20.27 billion. With the consensus EPS estimate being $1.27, the EPS surprise was +4.72%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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 interest-earning assets: $1,755.98 billion compared to the $1,727.53 billion average estimate based on seven analysts.
- Efficiency Ratio: 64% versus the seven-analyst average estimate of 64.5%.
- Return on assets (ROA) - Financial Ratios: 1% compared to the 1% average estimate based on seven analysts.
- Return on equity (ROE) - Financial Ratios: 11.5% compared to the 10.8% average estimate based on seven analysts.
- Book value per common share: $47.01 versus the seven-analyst average estimate of $47.08.
- Net interest margin on a taxable-equivalent basis: 2.8% compared to the 2.8% average estimate based on seven analysts.
- Net loan charge-offs as a % of average total loans: 0.6% versus 0.5% estimated by six analysts on average.
- Total nonperforming assets: $8.65 billion versus $8.91 billion estimated by five analysts on average.
- Total net loan charge-offs: $1.30 billion versus the five-analyst average estimate of $1.27 billion.
- Total nonaccrual loans: $8.43 billion versus the four-analyst average estimate of $8.91 billion.
- Allowance for loan losses as a percentage of total loans: 1.6% compared to the 1.6% average estimate based on four analysts.
- Common Equity Tier 1 (CET1) - Standardized Approach: 11% compared to the 11.1% average estimate based on three analysts.
View all Key Company Metrics for Wells Fargo here>>>Shares of Wells Fargo have returned +5.1% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.