Jim Cramer Notes Wells Fargo Shocked Wall Street With Miss

Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer weighed in on. Cramer discussed that the firm wants to “be a growth bank again,” and commented:

“Worse, no amount of cologne could cover up the stench of the steaming Wells Fargo today, another relatively strong bank that’s coming into earnings. After years of being restricted… in what it wanted to do because of the Federal Reserve due to previous scandals, Wells is finally ready to play offense, but it sure didn’t tell the Street about the sudden shakeup in the mosaic with the bank’s earnings. All people could focus on was how they missed so badly in net interest income, even though they weren’t even focused on it anymore, which is something that goes away if you get more aggressive, and they’re getting more aggressive to attract depositors, make loans.

Wells wants to be a growth bank again, not some bank account… It’s truly a good thing. In the meantime, though, management seemed unprepared to explain the transition, and the Street was horrified. I was horrified too, really a day ruiner… Now I’m quite confident that both stocks are going higher eventually, but now they have to shake out all the weak hands before that happens, and that takes time. You have to build a whole new shareholder base. The companies might help. They might come on and tell us where the sellers were wrong. Maybe Wells Fargo starts a gigantic buyback, they have one, but in earnings season, there’s no such thing as do-overs. The fact is that if BlackRock or Wells Fargo had reported quarters that were in keeping with what was expected, they wouldn’t necessarily be higher today, but they certainly wouldn’t have ruined earnings season for me.”

Wells Fargo (NYSE:WFC) provides a broad range of financial services, including banking, lending, investment, and wealth management solutions for individuals, businesses, and institutional clients.

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Disclosure: None. This article is originally published at Insider Monkey.