Wells Fargo (NYSE:WFC) earnings for first quarter of 2020 have WFC stock falling on Tuesday. That comes after reporting diluted earnings per share (EPS) of 1 cent. That’s nowhere close to Wall Street’s estimate of 33 cents per share for the quarter. The financial services company’s revenue of $17.72 billion also misses analysts’ estimates of $19.35 billion.
Here’s what else is worth noting from the most recent Wells Fargo earnings report.
- Diluted per-share earnings are down 99.17% from $1.20 during the same time last year.
- Revenue is sitting 18% lower than the $21.61 billion reported in the first quarter of 2019.
- The Wells Fargo earnings report also includes a net income of $653 million.
- That’s 88.86% worse than the company’s net income of $5.86 billion reported during the same period of the year prior.
John Shrewsberry, chief financial officer at Wells Fargo, said this about the WFC stock earnings report:
“Our results were impacted by a $3.1 billion reserve build, which reflected the expected impact these unprecedented times could have on our customers. Our results also included an impairment of securities of $950 million driven by economic and market conditions. We maintained strong liquidity and capital, and we are committed to using our financial strength to help support the U.S. economy, while still operating in compliance with the asset cap under the Federal Reserve consent order.”
The Wells Fargo earnings report doesn’t include its outlook for 2020. Wall Street’s current estimates are for diluted EPS of $2.10 on revenue of $76.28 billion. However, that will likely change as the novel coronavirus causes trouble for the U.S. economy.
WFC stock was down 4.65% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
