Skip to main content

Market Overview

Wells Fargo's Earnings Outlook

Share:

Wells Fargo (NYSE:WFC) unveils its next round of earnings this Wednesday, April 14. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.66 and sales around $17.41 billion. In the same quarter last year, Wells Fargo announced EPS of $0.8 on revenue of $17.72 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 17.5%. Revenue would be down 1.73% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.60 0.45 -0.20 0.36
EPS Actual 0.64 0.42 -0.66 0.80
Revenue Estimate 18.13 B 17.97 B 18.40 B 19.35 B
Revenue Actual 17.93 B 18.86 B 17.84 B 17.72 B

eps graph

Stock Performance

Over the last 52-week period, shares are up 40.15%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Wells Fargo is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

Related Articles (WFC)

View Comments and Join the Discussion!

Posted-In: BZI-EPEarnings