Categories Analysis, Finance, U.S. Markets News

Earnings preview: Wall St to measure Wells Fargo’s confidence in Q4

Amidst escalating geo-economic tensions, Wells Fargo (WFC) is scheduled to report fourth quarter results on Tuesday, January 15. The Wall Street will primarily be measuring the confidence of the biggest US mortgage lender through the Q4 financials, after years of being embroiled in numerous scandals.

Do not expect any big jumps in the results; in fact, most investors would be happy to see slight improvements from the prior sequential quarter. Analysts, on an average, expect revenue to decline 2.3% to $21.42 billion. Meanwhile, quarterly earnings are expected to grow to $1.17 per share from 97 cents per share a year ago.

The bottom-line would be helped by the bank’s cost cutting initiatives, which include a 5% job cut it announced in September. The layoffs will be carried out in a span of three years.

Wells Fargo third quarter 2018 earnings results

On an operational level also, Wells Fargo has been performing relatively well recently. The company has managed to grow its customer accounts on a consistent basis, which in turn has helped in boosting lending activities. The management will have a lot to say regarding the same at the conference call. Investor confidence in the stock would highly depend on the operational guidance given during the call.

Last month, Wells Fargo reached an agreement with the attorney generals from all 50 US states and the District of Columbia on issues related to its sales practices and mortgage interest rates. The agreement includes the payment of $575 million to resolve claims made by the state attorneys general on these issues.

This comes as a major breather to WFC investors, who can now merit the company based on its operational performance. With a dividend yield of 3.78%, WFC is a difficult stock to ignore.

Earnings preview: JPMorgan will brave global headwinds in Q4

The stock has fallen 23% in what has turned out to be a tumultuous year. If the results are strong, it would present a good buying opportunity to investors.  WFC has 8 Buy ratings and 6 Hold ratings. It has an average 12-month price target of $58.8, representing a 22% upside.


Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips 

Most Popular

IPO Alert: Here’s what to look for when CaliberCos goes public

The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is

CarMax (KMX) Stock: Does the current dip offer a buying opportunity?

The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with

Ultimax Digital gears up for $10mln IPO. Here’s all you need to know

The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax

Add Comment
Viewing Highlight