Wells Fargo investors brace for quarterly earnings call


Wells Fargo is releasing its fourth quarter fiscal 2021 results next week. The market expects EPS of $ 0.94 for the quarter and estimated annual revenue for the year ending December 2021 to be $ 75.84 billion.

Wells Fargo (NYSE: WFC) is a leading financial services company based in San Francisco, United States. It serves over 10% of the country’s small businesses and is one of the largest US corporations.

With more than 70 million customers and approximately 7,000 locations, Wells Fargo provides banking products and services across America. Next week, it releases financial results for the last quarter of its 2021 fiscal year, and the share price is up + 77.16% in the past twelve months.

Wells Fargo is a dividend paying company with a payout ratio of 18.78%. The dividend is expected to nearly double in the coming years and reach $ 1.8 by 2024.

P / E ratio is expected to decline in the coming years

The P / E ratio is slightly above the industry median (5.70% above) and is expected to decline in the coming years. As the Federal Reserve prepares to tighten monetary policy, financial services companies tend to outperform in a rising interest rate environment.

What Are Wells Fargo Stock Price Analysts Saying?

Analysts are optimistic about the Wells Fargo share price. Of the 47 analysts covering the stock, 23 have issued buy ratings and 23 have neutral ratings. Only 1 analyst issued a sales note.

This year, Barclays Capital raised its outlook on the Wells Fargo stock price and raised it to buy with a price target of $ 62. The same Morgan Stanley did in December, but with a lower price target – $ 61.

What are the estimates for the fourth quarter of fiscal 2021?

Investors expect EPS of $ 0.94 for the quarter and the estimated annual revenue for the year ending December 2021 is $ 74.84 billion. If Wells Fargo reports EPS higher than the market estimate, this would be the sixth consecutive quarter it has done so.

At current market prices, the company has a market capitalization of $ 202.27 billion, more than competitors such as Citigroup or Royal Bank of Canada.

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