Group 1: Earnings Performance - Wells Fargo reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and showing a slight increase from $1.26 per share a year ago, representing an earnings surprise of 3.25% [1] - The company posted revenues of $20.15 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.12%, and down from $20.86 billion year-over-year [2] - Over the last four quarters, Wells Fargo has surpassed consensus EPS estimates four times but has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Wells Fargo shares have declined approximately 10.2% since the beginning of the year, slightly outperforming the S&P 500's decline of 10.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.46 on revenues of $21.06 billion, and for the current fiscal year, it is $5.83 on revenues of $84.52 billion [7] Group 3: Industry Context - The Financial - Investment Bank industry, to which Wells Fargo belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Wells Fargo is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Insights - Wells Fargo reported an increase in quarterly earnings driven by stable income from investment banking and wealth management, leading to a nearly 2% rise in shares during pre-market trading [1] Financial Performance - Net interest income decreased by 6% year over year to $11.50 billion [2] - Non-interest income, which includes investment banking fees, brokerage commissions, and advisory fees, rose by 1% to $8.65 billion from $8.54 billion last year [2] - Adjusted earnings per share were $1.39, a 16% increase year over year, but slightly below the estimate of $1.24 due to special items during the quarter [5] - Total revenue was reported at $20.15 billion, compared to the expected $20.75 billion [5] Share Buyback and Provisions - The company repurchased 44.5 million shares worth $3.5 billion in the first quarter [3] - Wells Fargo set aside $932 million as a provision for credit losses, which included a decrease in the allowance for credit losses [4] Economic Outlook - CEO Charlie Scharf emphasized the uncertainty in the economy due to the Trump administration's trade policies and called for a timely resolution [2][3] - The company anticipates continued volatility and a slower economic environment in 2025, with outcomes dependent on policy changes [3]

Financial Performance - Total revenue for Q1 2025 was $20,149 million, a decrease of 1% from Q4 2024 and 3% from Q1 2024[4] - Wells Fargo net income for Q1 2025 was $4,894 million, down 4% from Q4 2024 but up 6% from Q1 2024[4] - Diluted earnings per common share for Q1 2025 were $1.39, a decrease of 3% from Q4 2024 and an increase of 16% from Q1 2024[4] - Net income applicable to common stock for Q1 2025 was $4,616 million, a decrease of 4% from Q4 2024 but an increase of 7% from Q1 2024[10] - Earnings per common share for Q1 2025 was $1.41, down 3% from Q4 2024 but up 17% from Q1 2024[10] Asset and Equity - Total equity increased to $182,906 million, a 1% rise from Q4 2024[8] - Total assets as of March 31, 2025, were $1,950,311 million, a 1% increase from Q4 2024[8] - Total assets as of March 31, 2025, were $1,919,661 million, slightly up from $1,918,536 million in the previous quarter[15] - Total equity as of Mar 31, 2025, is $182.9 billion, reflecting a 1% increase from $181.1 billion on Dec 31, 2024[56] Loans and Deposits - Average loans for Q1 2025 were $908,182 million, remaining stable compared to Q4 2024 but down 2% from Q1 2024[8] - Total deposits decreased to $1,361,728 million, down 1% from Q4 2024 and 2% from Q1 2024[13] - Total loans amounted to $315,973 million, a decrease of 2% from the previous quarter and 4% year-over-year[21] - Total loans outstanding as of March 31, 2025, were $913,842 million, reflecting a $1,097 million increase from the previous quarter[35] Income and Expenses - Interest income for Q1 2025 was $20,973 million, a decrease of 5% from Q4 2024 and 8% from Q1 2024[10] - Net interest income decreased to $11,495 million, down 3% from Q4 2024 and 6% from Q1 2024[10] - Noninterest expense for the quarter was $13,891 million, compared to $13,900 million in the previous quarter, indicating a marginal decrease[16] Credit Losses and Allowances - Provision for credit losses decreased to $932 million, a 15% decline from Q4 2024 and a 1% decrease from Q1 2024[4] - The allowance for loan losses was $14,029 million, a slight decrease of 1% from Q4 2024[13] - The provision for credit losses for loans was $925 million for the quarter, a decrease of $191 million from the previous quarter[38] - Total allowance for credit losses for loans is $14,552 million, representing 1.59% of loans as of March 31, 2025[40] Nonperforming Assets - Nonaccrual loans increased to $7,978 million, accounting for 0.87% of total loans as of March 31, 2025, up from $7,730 million (0.85%) in the previous quarter[42] - Total nonperforming assets reached $8,225 million, or 0.90% of total loans, an increase of $289 million from $7,936 million (0.87%) in the previous quarter[42] Segment Performance - Total revenue for the Commercial Banking Segment was $2,925 million, down 8% from the previous quarter and 7% year-over-year[25] - Net income for the Corporate and Investment Banking Segment rose to $1,941 million, a 23% increase from the previous quarter but down 2% year-over-year[29] - Net interest income for the Wealth and Investment Management segment decreased to $826 million, down 4% from the previous quarter and 5% year-over-year[32] Customer Metrics - Digital active customers reached 36.7 million, a 2% increase from the previous quarter and a 3% increase year-over-year[21] - Mortgage loan originations totaled $4.4 billion, a decrease of 25% from the previous quarter but an increase of 26% year-over-year[21] Capital Ratios - Common Equity Tier 1 (CET1) ratio was 11.1% for Q1 2025, unchanged from Q4 2024[8] - Return on average common stockholders' equity (ROE) for Q1 2025 is 11.5%, compared to 11.7% in Q4 2024[54] - Tangible common equity as of Mar 31, 2025, is $137.776 billion, up 2% from $135.628 billion in Q4 2024[54]

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.Earnings season has rolled around again. As is the custom, the big banks are set to kick things off with their Q1 results starting on Friday.Ian leads the investing group Ian's Insider Corner . Features of the group include: the Weekend Digest which covers everything from new ideas ...

I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.Analyst’s D ...

Wells Fargo & Company (WFC) is slated to report first-quarter 2025 results on April 11, 2025, before market open.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Among Wells Fargo’s close peers, Bank of America (BAC) and Citigroup Inc. (C) are also slated to announce quarterly numbers on April 15. WFC’s fourth-quarter performance benefited from higher non-interest income. However, the decrease in net interest income (NII) was a spoilsport. The Zacks Consensus Estimate for first-quart ...

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 projectio ...

Market Overview - The U.S. stock market experienced a significant drop on April 2, with major indices suffering their largest single-day declines in years, triggered by the Trump administration's announcement of a new round of tariff policies [2][3] - The Dow Jones Industrial Average fell by 1,679.39 points, a decline of 3.98%, closing at 40,545.93 points, marking the highest drop since June 2020 [2] - The S&P 500 index decreased by 4.84%, closing at 5,396.52 points, while the Nasdaq Composite index plummeted by 5.97%, closing at 16,550.61 points, both setting records for their largest single-day declines since June 2020 [2] Sector Impact - Major technology stocks were heavily impacted, with Apple shares dropping by 9.25%, resulting in a market value loss of approximately $310.9 billion [4] - Other tech giants like Amazon, Nvidia, Tesla, Google, and Microsoft also saw significant declines, with Amazon falling over 8% and Nvidia dropping over 7% [4] - Financial stocks also faced severe losses, with JPMorgan Chase down nearly 7%, Goldman Sachs down over 9%, and Citigroup down over 12% [4] - The semiconductor sector was not spared, with the Philadelphia Semiconductor Index falling by 9.88% and individual stocks like Micron Technology and Microchip Technology dropping over 16% [4] Global Market Reaction - The panic in the U.S. market led to a ripple effect globally, with European indices such as the STOXX 50 and the UK FTSE 100 also experiencing declines of 3.59% and 1.55%, respectively [7] - Asian markets followed suit, with Japan's Nikkei 225 index dropping 2.26% and South Korea's KOSPI index down 0.48% [7] Economic Outlook - Analysts expressed a pessimistic outlook regarding the new tariff policies, suggesting that they could lead to a significant increase in the average tariff rate on U.S. imports, potentially impacting inflation [6] - Barclays Bank projected that U.S. GDP growth could shrink to 0.1% by 2025 due to the escalating trade tensions [6] - The market is increasingly concerned about retaliatory tariffs from other countries, which could exacerbate the economic downturn [6] Federal Reserve Response - Following the market turmoil, expectations for a Federal Reserve interest rate cut surged, with traders anticipating a 25 basis point cut as early as June [8] - Analysts believe that the current economic "growth shock" may prompt the Fed to adopt a more accommodative monetary policy sooner than previously expected [8]

Core Viewpoint - Wells Fargo (WFC) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with the consensus outlook indicating a potential impact on its near-term stock price [1][3]. Earnings Expectations - The consensus estimate for Wells Fargo's quarterly earnings is $1.23 per share, reflecting a year-over-year decrease of 2.4%, while revenues are projected to be $20.8 billion, down 0.3% from the previous year [3]. - The consensus EPS estimate has been revised 0.42% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Wells Fargo is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.53%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Historical Performance - In the last reported quarter, Wells Fargo exceeded the expected earnings of $1.34 per share by delivering $1.42, resulting in a surprise of +5.97% [12]. - Over the past four quarters, Wells Fargo has consistently beaten consensus EPS estimates [13]. Conclusion - While Wells Fargo is positioned as a compelling earnings-beat candidate, it is essential to consider other factors that may influence stock performance beyond just earnings results [14][16].

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...