CLSA's Mike Mayo Thinks Wells' (WFC) Q1 Results 'Stunk'
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Wells Fargo (NYSE: WFC) shares are lower on Friday's session following what would initially appear to be solid results from the San Francisco, CA-based institution.
As Nomura pointed out earlier, Q1 EPS of 92 cents and revs of $21.3 billion compared with Street estimates calling for EPS of 88 cents and revs of $21.6 billion. Nomura analyst Keith Murray thought that the numbers would be met with a "muted" response by investors.
Then there's Mike Mayo, of Credit Agricole Securities. On a conference call with executives this morning, Mayo told CEO John Stumpf and CFO Tim Sloan that results "stunk." Mayo was specifically referring to net interest income from loans.
Wells reported $10.4 billion of net interest income from loans, down 4 percent over the prior year. The firm alluded to a shift in the calendar affecting the results, which would otherwise have been flat.
Other factors hitting wells were an 8 basis point drop in net interest margins to 3.48 percent, while mortgage banking income slipped 2.6 percent. The dip in mortgage operations is no surprise; earlier in the week it was reported that institutions will be making cuts, with many coming in the home lending and operations segment.
Shares of Wells are down over 1 percent.
As Nomura pointed out earlier, Q1 EPS of 92 cents and revs of $21.3 billion compared with Street estimates calling for EPS of 88 cents and revs of $21.6 billion. Nomura analyst Keith Murray thought that the numbers would be met with a "muted" response by investors.
Then there's Mike Mayo, of Credit Agricole Securities. On a conference call with executives this morning, Mayo told CEO John Stumpf and CFO Tim Sloan that results "stunk." Mayo was specifically referring to net interest income from loans.
Wells reported $10.4 billion of net interest income from loans, down 4 percent over the prior year. The firm alluded to a shift in the calendar affecting the results, which would otherwise have been flat.
Other factors hitting wells were an 8 basis point drop in net interest margins to 3.48 percent, while mortgage banking income slipped 2.6 percent. The dip in mortgage operations is no surprise; earlier in the week it was reported that institutions will be making cuts, with many coming in the home lending and operations segment.
Shares of Wells are down over 1 percent.
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