Wall Street analysts forecast that Wells Fargo (WFC) will report quarterly earnings of $1.54 per share in its upcoming release, pointing to a year-over-year increase of 1.3%. It is anticipated that revenues will amount to $21.17 billion, exhibiting an increase of 4% compared to the year-ago quarter.
Over the last 30 days, there has been an upward revision of 2.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Wells Fargo metrics that are commonly tracked and forecasted by Wall Street analysts.
The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 63.4%. The estimate compares to the year-ago value of 64.0%.
The average prediction of analysts places 'Average Balance - Total interest-earning assets' at $1781.03 billion. Compared to the present estimate, the company reported $1754.07 billion in the same quarter last year.
Analysts expect 'Return on equity (ROE) - Financial Ratios' to come in at 12.2%. Compared to the current estimate, the company reported 11.7% in the same quarter of the previous year.
According to the collective judgment of analysts, 'Book value per common share' should come in at $51.70 . The estimate is in contrast to the year-ago figure of $49.26 .
The collective assessment of analysts points to an estimated 'Total nonperforming assets' of $8.16 billion. Compared to the current estimate, the company reported $8.38 billion in the same quarter of the previous year.
Analysts predict that the 'Net loan charge-offs' will reach $1.12 billion. The estimate is in contrast to the year-ago figure of $1.11 billion.
Based on the collective assessment of analysts, 'Tier 1 Leverage Ratio' should arrive at 7.9%. The estimate is in contrast to the year-ago figure of 8.3%.
The consensus estimate for 'Total nonaccrual loans' stands at $8.01 billion. Compared to the present estimate, the company reported $8.17 billion in the same quarter last year.
Analysts' assessment points toward 'Common Equity Tier 1 (CET1) - Standardized Approach' reaching 11.1%. The estimate compares to the year-ago value of 11.3%.
It is projected by analysts that the 'Tier 1 Capital Ratio - Standardized Approach' will reach 12.2%. Compared to the current estimate, the company reported 12.8% in the same quarter of the previous year.
Analysts forecast 'Total Noninterest Income' to reach $9.10 billion. The estimate compares to the year-ago value of $8.68 billion.
The consensus among analysts is that 'Net interest income (on a taxable-equivalent basis)' will reach $12.08 billion. The estimate is in contrast to the year-ago figure of $11.77 billion.
View all Key Company Metrics for Wells Fargo here>>>
Over the past month, Wells Fargo shares have recorded returns of -0.7% versus the Zacks S&P 500 composite's +4% change. Based on its Zacks Rank #3 (Hold), WFC will likely exhibit a performance that aligns with the overall market in the upcoming period. 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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