Key Stats for Wells Fargo Stock
- Price change for Wells Fargo stock in last 6 months: -1%
- $WFC Stock Price as of Oct. 13: $81
- 52-Week High: $98
- $WFC Stock Price Target: $99
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What Happened?
Wells Fargo (WFC) beat profit estimates for Q3.
- Earnings were $1.87 per share, ahead of the $1.86 analysts expected. EPS was up 13% from a year ago.
- Revenue was $21.87 billion, below the $22.32 billion estimate.
- Net interest income rose 5% to $12.52 billion but also missed estimates of $12.63 billion.
The bank’s markets business was the weak spot. Revenue fell 1% year over year and 17% from the prior quarter.
Rates jumped in the last weeks of September, and client activity slowed. Equities revenue still rose 21% from last year.
The lending business was strong. Average loans rose 11% year over year, commercial loans grew 10% to $240.5 billion and consumer loans grew 4% to about $342 billion.
Investment banking revenue was $611 million, up 10% from last year but down 3% from the prior quarter.
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What the Market Is Telling Us About Wells Fargo Stock
Wells Fargo stock was down about 1.3% after the report. The revenue miss mattered more to the market than the small profit beat.
CEO Charlie Scharf warned that inflation and higher rates are still headwinds. He said the longer they last, the more pressure they put on consumers and businesses.
Even so, credit looks healthy. The loan charge-off rate was 38 basis points, down from 41 basis points a year ago.
Management expects better results ahead. CFO Mike Santomassimo said Q4 net interest income should be about $13 billion.
He expects growth from loans, deposits, and higher rates. Some of that gain could be offset in the markets business.
The bank also keeps returning cash. It raised its dividend to $0.50 per share and bought back $2.5 billion of stock in the quarter.
For now, Wells Fargo stock seems caught between two stories.
Loan growth and credit quality look solid. Weak market revenue and a net interest income miss gave investors a reason to pause. The Q4 outlook is the next thing to watch.
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So what is Wells Fargo stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
