Wall Street analysts forecast that Wells Fargo (WFC) will report quarterly earnings of $1.23 per share in its upcoming release, pointing to a year-over-year decline of 2.4%. It is anticipated that revenues will amount to $20.8 billion, exhibiting a decline of 0.3% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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 typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Wells Fargo metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Average Balance - Total interest-earning assets' will reach $1,763.56 billion. Compared to the current estimate, the company reported $1,758.40 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 67.8%. The estimate is in contrast to the year-ago figure of 69%.
The collective assessment of analysts points to an estimated 'Return on equity (ROE) - Financial Ratios' of 10.1%. The estimate is in contrast to the year-ago figure of 10.5%.
The combined assessment of analysts suggests that 'Book value per common share' will likely reach $49.54. Compared to the present estimate, the company reported $46.40 in the same quarter last year.
It is projected by analysts that the 'Total nonperforming assets' will reach $8.07 billion. Compared to the current estimate, the company reported $8.24 billion in the same quarter of the previous year.
Analysts expect 'Net loan charge-offs' to come in at $1.22 billion. The estimate compares to the year-ago value of $1.15 billion.
According to the collective judgment of analysts, 'Tier 1 Leverage Ratio' should come in at 8.2%. Compared to the current estimate, the company reported 8.2% in the same quarter of the previous year.
The consensus estimate for 'Total nonaccrual loans' stands at $7.90 billion. The estimate compares to the year-ago value of $8.08 billion.
The average prediction of analysts places 'Common Equity Tier 1 (CET1) - Standardized Approach' at 11.1%. The estimate compares to the year-ago value of 11.2%.
Analysts forecast 'Tier 1 Capital Ratio - Standardized Approach' to reach 13.0%. Compared to the current estimate, the company reported 12.7% in the same quarter of the previous year.
The consensus among analysts is that 'Total Noninterest Income' will reach $8.91 billion. Compared to the present estimate, the company reported $8.64 billion in the same quarter last year.
Analysts' assessment points toward 'Net interest income (on a taxable-equivalent basis)' reaching $11.91 billion. Compared to the present estimate, the company reported $12.32 billion in the same quarter last year.
View all Key Company Metrics for Wells Fargo here>>>
Shares of Wells Fargo have demonstrated returns of -6.9% over the past month compared to the Zacks S&P 500 composite's -12.2% change. With a Zacks Rank #3 (Hold), WFC is expected to mirror the overall market performance 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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