Early Read of Wells Fargo (WFC) Q2 Results - Evercore Partners
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Price: $56.61 -0.63%
Rating Summary:
21 Buy, 20 Hold, 1 Sell
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Today's Overall Ratings:
Up: 11 | Down: 14 | New: 50
Rating Summary:
21 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 50
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Evercore Partners analyst Andrew Marquardt provided an early read of Wells Fargo (NYSE: WFC) Q2 results.
Marquardt noted the headline EPS number of $0.98 included a few specials that net added $0.01, which brings the firm's initial view of "core" EPS closer to $0.97 which beat both theirs and consensus estimates of $0.92.
The analyst said the results were solid overall with good revenue, "with better spread driven by less NIM pressure and earning asset growth (although loan growth muted as expected) , core fees about in line (including mortgage), and expenses a bit heavy on incentives/other." He added, "Lower credit costs driven by lower NCOs and greater reserve release. NPAs declined 7.9% LQ (vs -6.6% in 1Q). Capital strong with T1C B3 of 8.54% post final rules from Fed. "
The firm said a positive stock reaction is likely given core beat and solid underlying results. He said to focus on outlook clarity from management.
They maintained an Equal Weight rating and price target of $41.
For an analyst ratings summary and ratings history on Wells Fargo click here. For more ratings news on Wells Fargo click here.
Shares of Wells Fargo closed at $41.89 yesterday.
Marquardt noted the headline EPS number of $0.98 included a few specials that net added $0.01, which brings the firm's initial view of "core" EPS closer to $0.97 which beat both theirs and consensus estimates of $0.92.
The analyst said the results were solid overall with good revenue, "with better spread driven by less NIM pressure and earning asset growth (although loan growth muted as expected) , core fees about in line (including mortgage), and expenses a bit heavy on incentives/other." He added, "Lower credit costs driven by lower NCOs and greater reserve release. NPAs declined 7.9% LQ (vs -6.6% in 1Q). Capital strong with T1C B3 of 8.54% post final rules from Fed. "
The firm said a positive stock reaction is likely given core beat and solid underlying results. He said to focus on outlook clarity from management.
They maintained an Equal Weight rating and price target of $41.
For an analyst ratings summary and ratings history on Wells Fargo click here. For more ratings news on Wells Fargo click here.
Shares of Wells Fargo closed at $41.89 yesterday.
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