Wells Fargo & Co (NYSE:WFC) stock was down on Friday on news that it may have to revise its earnings report for the first quarter of 2018.
According to Wells Fargo & Co, it is currently holding discussions with the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency. The company notes that these discussions have to do with its compliance risk management program. It also concerns certain previous practices in connection to its automobile collateral protection insurance and mortgage interest rate lock extensions.
Wells Fargo & Co says that both the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency have agreed to settle the matter with civil money penalties of $1 billion. However, possible additional accruals may change the company’s earnings for the first quarter of the year.
Wells Fargo & Co’s preliminary results for the first quarter of 2018 includes earnings per share of $1.12. This is an increase over its earnings per share of $1.03 from the same time last year. It also comes in above Wall Street’s earnings per share estimate of $1.07 for the quarter.
The preliminary earnings for the first quarter of the year also include revenue of $21.90 billion. This is down from the banking company’s revenue of $22.30 billion from the first quarter of 2017. However, it does come in above analysts’ revenue estimate of $21.75 billion for the period.
Wells Fargo & Co notes that these figures may change depending on how its settlement talks go. It says it will provide updated results in a Form 10-Q that it will file with the U.S. Securities and Exchange Commission.
WFC stock was down 3% as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
