Financials

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our target price by $11 to $70, 12.0x our 2025 EPS estimate, below the 10-year historic average of 15.3x given modest growth expectations. We raise our 2024 EPS view by $0.11 to $5.11 and increase 2025’s by $0.43 to $5.82. WFC posted Q1 EPS of $1.20 vs. $1.23, $0.11 above consensus on revenue of $20.9 billion. Our improved opinion of WFC reflects expectations for net interest income (NII) outperformance as rate cut expectations continue to get pushed back. We view management’s NII guidance (7%-9% lower in 2024) as conservative and see upside as asset yields reprise higher. In Q1, noninterest income jumped 17% Y/Y on a 92% explosion in investment banking fees given increased industry activity. We were also encouraged by the bank’s credit quality

Wells Fargo’s (WFC) Q1 adjusted earnings per share exceeded expectations mainly due to higher non-interest income and lower loan-loss provisions, HSBC Global Research said in a note Friday. The firm reiterated its hold rating and $60 target price on Wells Fargo. Analysts, including Saul Martinez, said that net interest income, which stood at $12.2 billion, came in slightly below HSBC’s estimate, while adjusted expenses were in line. The analysts added that the company maintained the 2024 guidance for net interest income and adjusted expenses, with the former implying “modest downside risk” to their 2024 projection. “Our first take is mixed as continued net interest income pressure offsets good expense performance and continued momentum in non-interest income, notably Investment Banking and Markets,” the note said. Adjusted expenses, which excluded the Federal Deposit Insurance Corp. special assessment and operating losses, were up 5% quarter-over-quarter and fell 2% year-over-year, the analysts said. “We

The following is a summary of the Wells Fargo & Company (WFC) Q1 2024 Earnings Call Transcript: Financial Performance: Wells Fargo reported Q1 net income of $4.6 billion or $1.20 per diluted common share. The company saw a decrease of 8% in net interest income due to higher interest rates on funding costs and lower loan balances. Wells Fargo’s average loans went down for the past quarter and year. The company has repurchased $6.1 billion of common stock in the first quarter, resulting in a decrease of 6% in average common shares compared to a year ago. Business Progress: Wells Fargo had a consent order from 2016 terminated by the OCC, which marked progress in their risk and control work. The company launched a new product, Autograph Journey, which helped increase credit card call spend by about $5 billion or 14% from a year ago. CEO Charlie Scharf acknowledged that

Wells Fargo (WFC) reported Q1 earnings Friday of $1.20 per diluted share, down from $1.23 a year earlier. Analysts polled by Capital IQ expected $1.05. Revenue for the quarter ended March 31, was $20.86 billion, up from $20.73 billion a year earlier. Analysts surveyed by Capital IQ expected $20.15 billion.