Wells Fargo Shares Drop 4% After Revenue Miss Despite Earnings Beat

Core Viewpoint - Wells Fargo reported adjusted earnings that exceeded analyst expectations, but the stock price declined due to missed revenue estimates Financial Performance - Adjusted earnings per share were $1.76, surpassing the consensus forecast of $1.66 [1] - Revenue totaled $21.29 billion, below the expected $21.64 billion, but up 4% from $20.38 billion a year earlier [1] - Net income for the quarter was $5.4 billion, or $1.62 per diluted share, including a $612 million severance charge; adjusted net income was $5.8 billion excluding this charge [2] - Net interest income rose 4% year over year to $12.33 billion, while noninterest income increased 5% to $8.96 billion [2] - Average loans grew 5% year over year to $955.8 billion, and average deposits increased 2% to $1.38 trillion [2] - Credit performance improved with net charge-offs declining 13% from a year earlier to $1.03 billion [2] Capital and Shareholder Actions - The Common Equity Tier 1 capital ratio was reported at 10.6%, down from 11.1% a year earlier [3] - The bank repurchased 58.2 million shares for a total of $5.0 billion during the quarter [3]