Wells Fargo Earnings Preview: What to Expect

Company Overview - Wells Fargo & Company (WFC) is a leading financial services firm based in San Francisco, California, with a market cap of $292 billion, offering a wide range of services including consumer and commercial banking, lending, and wealth management [1] Earnings Expectations - Analysts anticipate WFC to report a profit of $1.65 per share for the fourth quarter, representing a 16.2% increase from $1.42 per share in the same quarter last year [2] - For the current fiscal year, WFC's EPS is projected to reach $6.15, an 11.4% year-over-year increase from $5.52 reported in fiscal 2024 [3] - Earnings are expected to grow further, with a forecasted 14% year-over-year increase to $7.01 per share in fiscal 2026 [3] Stock Performance - WFC's stock has increased by 35.1% over the past 52 weeks, outperforming the S&P 500 Index's 16.5% gains and the Financial Select Sector SPDR Fund's 14.7% returns during the same period [4] Market Reaction - Following the announcement of a reduction in the prime rate from 7% to 6.75% on December 10, WFC's shares rose by more than 2%, indicating a positive market response to the rate cut [5] Analyst Ratings - The consensus rating for WFC is "Moderate Buy," with 13 out of 26 analysts recommending "Strong Buy," four suggesting "Moderate Buy," and nine advising "Hold" [6] - The mean price target for WFC is $97.79, indicating a potential upside of 5.1% from current price levels [6]