Wells Fargo (WFC) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Core Viewpoint - Analysts forecast Wells Fargo (WFC) to report quarterly earnings of $1.54 per share, reflecting a year-over-year increase of 1.3%, with revenues expected to reach $21.17 billion, a 4% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 2.2%, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Key Financial Metrics - The 'Efficiency Ratio' is expected to be 63.4%, down from 64.0% a year ago [5]. - 'Average Balance - Total interest-earning assets' is projected at $1781.03 billion, up from $1754.07 billion in the same quarter last year [5]. - 'Return on equity (ROE)' is anticipated to be 12.2%, compared to 11.7% in the same quarter of the previous year [6]. - 'Book value per common share' is expected to be $51.70, up from $49.26 a year ago [6]. Asset Quality and Capital Ratios - 'Total nonperforming assets' are estimated at $8.16 billion, down from $8.38 billion in the same quarter last year [7]. - 'Net loan charge-offs' are projected to reach $1.12 billion, slightly up from $1.11 billion a year ago [7]. - 'Tier 1 Leverage Ratio' is expected to be 7.9%, down from 8.3% a year ago [8]. - 'Total nonaccrual loans' are estimated at $8.01 billion, down from $8.17 billion in the same quarter last year [8]. - 'Common Equity Tier 1 (CET1)' is projected to be 11.1%, compared to 11.3% a year ago [8]. - 'Tier 1 Capital Ratio' is expected to be 12.2%, down from 12.8% in the same quarter last year [9]. Income Projections - 'Total Noninterest Income' is forecasted to reach $9.10 billion, up from $8.68 billion a year ago [9]. - 'Net interest income (on a taxable-equivalent basis)' is expected to be $12.08 billion, compared to $11.77 billion in the previous year [10]. Stock Performance - Over the past month, Wells Fargo shares have recorded a return of -0.7%, while the Zacks S&P 500 composite has increased by 4% [10].