Wells Fargo (WFC) Beats Q1 Earnings Estimates

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]