In its upcoming report, Wells Fargo (WFC) is predicted by Wall Street analysts to post quarterly earnings of $1.40 per share, reflecting an increase of 5.3% compared to the same period last year. Revenues are forecasted to be $20.7 billion, representing no change year over year.
The consensus EPS estimate for the quarter has undergone an upward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Wells Fargo metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Efficiency Ratio' should come in at 64.6%. The estimate is in contrast to the year-ago figure of 64.0%.
Analysts expect 'Average Balance - Total interest-earning assets' to come in at $1762.50 billion. Compared to the present estimate, the company reported $1755.98 billion in the same quarter last year.
Analysts' assessment points toward 'Return on equity (ROE) - Financial Ratios' reaching 11.5%. Compared to the current estimate, the company reported 11.5% in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Book value per common share' should arrive at $50.62 . The estimate compares to the year-ago value of $47.01 .
The consensus estimate for 'Total nonperforming assets' stands at $8.31 billion. Compared to the present estimate, the company reported $8.65 billion in the same quarter last year.
Analysts forecast 'Net loan charge-offs' to reach $1.16 billion. The estimate is in contrast to the year-ago figure of $1.30 billion.
The consensus among analysts is that 'Tier 1 Leverage Ratio' will reach 8.1%. The estimate compares to the year-ago value of 8.0%.
The combined assessment of analysts suggests that 'Total nonaccrual loans' will likely reach $8.08 billion. Compared to the present estimate, the company reported $8.43 billion in the same quarter last year.
Analysts predict that the 'Common Equity Tier 1 (CET1) - Standardized Approach' will reach 11.1%. Compared to the present estimate, the company reported 11.0% in the same quarter last year.
The average prediction of analysts places 'Tier 1 Capital Ratio - Standardized Approach' at 12.6%. Compared to the present estimate, the company reported 12.4% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Total Noninterest Income' of $8.78 billion. Compared to the current estimate, the company reported $8.77 billion in the same quarter of the previous year.
It is projected by analysts that the 'Net interest income (on a taxable-equivalent basis)' will reach $11.98 billion. Compared to the current estimate, the company reported $12.01 billion in the same quarter of the previous year.
View all Key Company Metrics for Wells Fargo here>>>
Over the past month, shares of Wells Fargo have returned +9.2% versus the Zacks S&P 500 composite's +4.4% change. Currently, WFC carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Wells Fargo & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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