In its upcoming report, Wells Fargo (WFC – Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.34 per share, reflecting an increase of 3.9% compared to the same period last year. Revenues are forecasted to be $20.49 billion, representing a year-over-year increase of 0.1%.
Over the last 30 days, there has been an upward revision of 0.1% 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.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it’s common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts’ forecasts for key metrics can yield valuable insights.
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.
Based on the collective assessment of analysts, ‘Average Balance – Total interest-earning assets’ should arrive at $1,754.22 billion. Compared to the present estimate, the company reported $1,755 billion in the same quarter last year.
The collective assessment of analysts points to an estimated ‘Return on equity (ROE) – Financial Ratios’ of 10.9%. The estimate is in contrast to the year-ago figure of 7.6%.
The average prediction of analysts places ‘Book value per common share’ at $49.65. Compared to the present estimate, the company reported $46.25 in the same quarter last year.
The consensus among analysts is that ‘Total nonperforming assets’ will reach $8.66 billion. Compared to the present estimate, the company reported $8.44 billion in the same quarter last year.
Analysts’ assessment points toward ‘Efficiency Ratio’ reaching 65.1%. Compared to the current estimate, the company reported 77% in the same quarter of the previous year.
Analysts forecast ‘Net loan charge-offs’ to reach $1.23 billion. The estimate is in contrast to the year-ago figure of $1.25 billion.
Analysts expect ‘Total nonaccrual loans’ to come in at $8.51 billion. The estimate compares to the year-ago value of $8.26 billion.
The consensus estimate for ‘Common Equity Tier 1 (CET1) – Standardized Approach’ stands at 11.3%. Compared to the current estimate, the company reported 11.4% in the same quarter of the previous year.
The combined assessment of analysts suggests that ‘Tier 1 Leverage Ratio’ will likely reach 8.2%. The estimate compares to the year-ago value of 8.5%.
According to the collective judgment of analysts, ‘Tier 1 Capital Ratio – Standardized Approach’ should come in at 12.9%. Compared to the present estimate, the company reported 13% in the same quarter last year.
Analysts predict that the ‘Total Noninterest Income’ will reach $8.79 billion. Compared to the present estimate, the company reported $7.71 billion in the same quarter last year.
It is projected by analysts that the ‘Deposit-related fees’ will reach $1.30 billion. The estimate is in contrast to the year-ago figure of $1.20 billion.
View all Key Company Metrics for Wells Fargo here>>>
Over the past month, shares of Wells Fargo have returned +1.1% versus the Zacks S&P 500 composite’s -2.2% change. Currently, WFC carries a Zacks Rank #2 (Buy), suggesting that it may outperform 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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