Wells Fargo (NYSE:WFC) earnings for the second quarter of fiscal 2020 have WFC stock falling on Tuesday morning. This is despite reporting revenue of $17.84 billion, which is worse than Wall Street’s estimate of $18.4 billion. The company also reported adjusted losses per share of 66 cents, while analysts were expecting a 20-cent loss for the quarter.
Here is what else is worth mentioning from the most recent Wells Fargo earnings report.
- Adjusted loss per share is a negative switch from earnings per share (EPS) of $1.30 during Q2 2019.
- Revenue for the quarter comes in 17.3% lower compared to $21.58 billion during the same time last year.
- Operating losses of $1.22 billion is 394% worse year-over-year than a loss of $247 million
- Wells Fargo earnings also include a net loss of $2.4 billion.
- That is way lower than net income of $6.21 billion from the second quarter of 2019.
Charlie Scharf, chief executive officer of Wells Fargo, said this about the WFC stock earnings:
“We are extremely disappointed in both our second quarter results and our intent to reduce our dividend. Our view of the length and severity of the economic downturn has deteriorated considerably from the assumptions used last quarter, which drove the $8.4 billion addition to our credit loss reserve in the second quarter. While the negative impact of the pandemic is unprecedented and many of our business drivers were negatively impacted, our franchise should perform better, and we will make changes to improve our performance regardless of the operating environment.”
The company does not mention any sort of guidance for fiscal 2020. That said, we know what Wall Street is expecting. Analysts are calling for EPS of 64 cents on revenue of $72.95 billion for the period.
WFC stock was down 5.6% as of Tuesday morning.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.
