Seeking Clues to Wells Fargo (WFC) Q2 Earnings? A Peek Into Wall Street Projections for Key Metrics

Core Viewpoint - Wells Fargo (WFC) is expected to report quarterly earnings of $1.40 per share, a 5.3% increase year-over-year, with revenues forecasted at $20.7 billion, showing no change from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.6% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts project the 'Efficiency Ratio' to be 64.6%, up from 64.0% a year ago [5]. - The 'Average Balance - Total interest-earning assets' is expected to be $1,762.50 billion, compared to $1,755.98 billion in the same quarter last year [5]. - 'Return on equity (ROE)' is anticipated to remain at 11.5%, consistent with the previous year's figure [6]. - 'Book value per common share' is estimated at $50.62, up from $47.01 a year ago [6]. Asset and Income Projections - The consensus for 'Total nonperforming assets' is $8.31 billion, down from $8.65 billion in the same quarter last year [7]. - 'Net loan charge-offs' are forecasted to be $1.16 billion, a decrease from $1.30 billion year-over-year [7]. - The 'Tier 1 Leverage Ratio' is expected to reach 8.1%, slightly up from 8.0% a year ago [7]. - 'Total nonaccrual loans' are projected at $8.08 billion, down from $8.43 billion in the same quarter last year [8]. - 'Common Equity Tier 1 (CET1) - Standardized Approach' is expected to be 11.1%, up from 11.0% a year ago [8]. - The 'Tier 1 Capital Ratio - Standardized Approach' is estimated at 12.6%, compared to 12.4% in the same quarter last year [9]. - 'Total Noninterest Income' is projected at $8.78 billion, slightly up from $8.77 billion year-over-year [9]. - 'Net interest income (on a taxable-equivalent basis)' is expected to be $11.98 billion, down from $12.01 billion in the same quarter last year [10]. Stock Performance - Over the past month, Wells Fargo shares have returned +9.2%, outperforming the Zacks S&P 500 composite's +4.4% change [10].