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Wells Fargo & Company (WFC), headquartered in San Francisco, California, is a financial services company that provides diversified banking, investment, mortgage, and consumer and commercial finance products and services. With a market cap of $194.9 billion, the company serves physical stores, internet, and other distribution channels worldwide. The leading financial services company is expected to announce its fiscal third-quarter earnings for 2024 on Friday, Oct. 11.
Ahead of the event, analysts expect WFC to report a profit of $1.28 per share on a diluted basis, down 7.9% from $1.39 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect WFC to report EPS of $5.14, down marginally from $5.17 in fiscal 2023.
WFC stock has outperformed the S&P 500’s ($SPX) 34.2% gains over the past 52 weeks, with shares up 36.8% during this period. Similarly, it outshined the S&P 500 Financials Sector SPDR’s (XLF) 35.8% gains over the same time frame.
WFC's robust price performance over the past year can be attributed to its expanded API portfolio for commercial banking clients, allowing for seamless data transfer and faster order processing. The company's agreement to divest its non-agency third-party servicing segment to Trimont is likely to further streamline operations. With the Federal Reserve's interest rate cuts supporting the U.S. economy, WFC is expected to see positive trends in its net interest income.
On Jul. 12, WFC shares closed down more than 6% after reporting its Q2 earnings results. Its EPS of $1.33 beat Wall Street expectations of $1.27. The company’s revenue net of interest expense was $20.7 billion, surpassing Wall Street forecasts of $20.3 billion. WFC delivered a strong performance in investment advisory, trading, and investment banking fees.
Analysts’ consensus opinion on WFC stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 13 advise a “Strong Buy” rating, and 12 give a “Hold.” WFC’s average analyst price target is $62.59, indicating a potential upside of 12% from the current levels.
On the date of publication, Neha Panjwani 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.
