Market Overview

Wells Fargo To Post Low-Single Digits Growth?

Related WFC
Short Sellers Piling Into Big Bank Stocks Ahead Of Q3 Earnings
Meet SizeUp, The Startup Using Fintech To Narrow The Information Divide For Small Businesses
Equifax 'megabreach' creates opportunity for investors: Wells Fargo (Fox Business)

Wells Fargo & Co (NYSE: WFC) is to announce its second quarter financial results on Tuesday before the market opens. Expectations point towards a 3 percent year-over-year increase in earnings.

In the second quarter of 2014, the company reported earnings of $1.01 per share on revenue of $21.1 billion.

According to Esitmize, the Street is modeling consensus earnings of $1.04 per share on sales of $21.537 billion for the current quarter. The crowd is slightly more bullish and projects consensus earnings of $1.06 per share on revenue of $21.708 billion.

Wells Fargo has managed to beat estimates in most of the past eight quarters.

A Look At Large-Cap Banks

In a recent report, Morgan Stanley analyst Betsy Graseck shared a few bullish comments in relation to large-cap banks, saying, “bank shareholders should keep expectations low heading into Q2 earnings, but the forward-looking nature of the stock market could begin to boost bank stocks well ahead of fundamental improvements to the banking environment.”

“Higher rates, a strong spring selling season, and record M&A volumes all position banks well for 2H15 and beyond,” Graseck adds.

The analyst sees three major themes in the space:

  • Improving net interest margins and earnings, consequence from rising 10-year treasury yields.
  • Strong second quarter mortgage figures. The firm anticipates a 19 percent quarter-over-quarter increase in mortgage origination revenues for big banks.
  • “Booming M&A-related revenues resulting from the strongest M&A environment since the Financial Crisis.”

Latest Ratings for WFC

Jul 2017BMO CapitalUpgradesUnderperformMarket Perform
Jul 2017BerenbergDowngradesHoldSell
Apr 2017GuggenheimUpgradesSellNeutral

View More Analyst Ratings for WFC
View the Latest Analyst Ratings

Posted-In: Betsy Graseck EstimizeAnalyst Color Previews Crowdsourcing Analyst Ratings Trading Ideas General


Related Articles (WFC)

View Comments and Join the Discussion!