Wells Fargo

Wells Fargo’s (WFC) first-quarter results topped market estimates even though the lender recorded lower net interest income on an annual basis. Earnings ticked down to $1.20 a share for the quarter through March 31 from $1.23 a year earlier, but were above the Capital IQ-polled consensus of $1.05. The result included $284 million, or $0.06 per share, of additional expense tied to the Federal Deposit Insurance Corp. special assessment. It reflects an update provided by the FDIC on losses as well as potential recoveries related to bank failures last year. Revenue edged up 1% to $20.86 billion, ahead of the Street’s $20.15 billion view. Net interest income slid 8% to $12.23 billion due to higher interest rates on funding costs and lower loan balances. Noninterest income jumped 17% to $8.64 billion, led in part by higher trading revenue in the markets business and an increase in investment banking fees. “Our

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.

Investors in the US stock market should maintain a “more defensively positioned asset allocation” while awaiting clarity on the direction of inflation and interest rates, Wells Fargo Investment Institute said in a report Tuesday. The firm advised investors to prioritize quality and liquidity in equities and fixed income and maintain broad exposure to commodities in the meantime. As headwinds emerge in the current economic cycle amid low household savings, rising credit-card delinquency rates, and the lagged effect of higher interest rates on credit-sensitive sectors, a more noticeable growth slowdown is expected in the second half of the year, the report said. Wells Fargo said the downturn is, however, being cushioned and delayed by “unusually accommodative financial conditions” amid the ongoing “rapid” disinflation in the US and an “early reprieve” from high borrowing costs. It said an “abnormally low level of financial stress” thus prevails in the economy. “Ultimately, we believe

Goldman Sachs analyst Richard Ramsden maintains Wells Fargo (NYSE:WFC) with a Buy and raises the price target from $57 to $65.

Citigroup analyst Keith Horowitz downgrades Wells Fargo from Buy to Neutral and raises the price target from $57 to $63.

By Steve Gelsi Citigroup cuts Wells Fargo rating to neutral on ‘balanced’ risk/reward but boosts price target Citi has downgraded Wells Fargo & Co. to neutral from buy after a quick gain in its stock price this year relative to its expected performance. Citi analyst Keith Horowitz said Wells Fargo (WFC) is now trading at a premium relative to its peers. He hiked his price target for Wells Fargo to $63 from $57 on expectations of a higher, normalized return on tangible common equity, based on his view that federal regulators may pare back proposed capital requirements under the Basel III endgame regime. The stock closed at $57.01 on Tuesday. “We believe the risk/reward is fairly balanced,” Horowitz said in a research note issued late on Tuesday. Before Wednesday’s trades, Wells Fargo’s stock rose 15.8% in 2024, outpacing the 13.9% rise by JPMorgan Chase & Co. (JPM) and a 14.4%