Wells Fargo & Company (NYSE:WFC) reported better-than-expected earnings for its third quarter on Friday.
It reported a GAAP EPS of $1.42, beating the consensus of $1.28. Revenue fell 2% to $20.37 billion. Analysts expected $20.41 billion.
CEO Charlie Scharf commented, "Our earnings profile is very different than it was five years ago as we have been making strategic investments in many of our businesses and de-emphasizing or selling others. Our revenue sources are more diverse and fee-based revenue grew 16% during the first nine months of the year, largely offsetting net interest income headwinds. We have maintained strong credit discipline and driven significant operating efficiencies in the company while investing heavily to build a risk and control environment appropriate for a bank of our size and complexity."
For fiscal year 2024, Wells Fargo expects net interest income to be down around 9% from the 2023 level of $52.4 billion, compared to prior guidance of roughly 7% to 9% lower.
Wells Fargo shares gained 2.6% to trade at $62.54 on Monday.
These analysts made changes to their price targets on Wells Fargo following earnings announcement.
- Evercore ISI Group analyst John Pancari maintained Wells Fargo with an Outperform and raised the price target from $68 to $71.
- Piper Sandler analyst Scott Siefers maintained Wells Fargo with a Neutral and raised the price target from $60 to $62.
- RBC Capital analyst Gerard Cassidy reiterated Wells Fargo with a Sector Perform and maintained a $61 price target.
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