Earnings Briefing - Wells Fargo

LONDON, October 16, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings briefing on Wells Fargo & Company (NYSE: WFC). On October 14, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Wells Fargo. During Q3 FY14, Wells Fargo & Co.'s net revenue and net earnings grew 4% and 3%, respectively, on a Y-o-Y basis and diluted EPS increased $0.03 from the prior year's third quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Wells Fargo & Co. reported net revenues of $21.21 billion, compared to $20.48 billion in the same period last year. The company's net revenues during the reported quarter outperformed Bloomberg analysts' forecast of $21.11 billion. Net interest income in Q3 FY14 increased to $10.94 billion, from $10.75 billion in the preceding year's third quarter. Further, net noninterest income broadened to $10.27 billion, from $9.73 billion in the third quarter a year ago. Total noninterest expense during Q3 FY14 increased to $12.25 billion, from $12.10 billion in the same quarter last year, which included higher operating losses from litigation accruals and higher outside professional services costs. The free research on WFC can be downloaded as in PDF format at:

http://www.Investor-Edge.com/WFCFreeReport

Net interest margin in Q3 FY14 stood at 3.06%, compared to 3.39% in the corresponding quarter last year. Wells Fargo & Co.'s net income broadened to $5.73 billion, or $1.02 per diluted share in Q3 FY14, from $5.58 billion, or $0.99 per diluted share in the same quarter a year ago. Analysts from Bloomberg had expected the company to report net income of $5.42 billion, or $1.02 per diluted share in Q3 FY14.

John Stumpf, Chairman and CEO of Wells Fargo & Co., stated that the company's Q3 FY14 results demonstrated strength in the fundamental drivers of its long-term growth. Loan and deposit growth was strong and diversified across both commercial and consumer businesses during the quarter. Also, capital levels increased even as the company returned more capital to shareholders through higher dividends and share repurchases from a year ago. He further stated that the company will continue to see signs of a steadily improving economy, and remain optimistic about the opportunities ahead. The team remains committed to meeting the financial needs of the company's customers, and this focus will continue to drive its performance over the long term, Mr. Stumpf concluded. Sign up and read the free analyst's notes on WFC at:

http://www.Investor-Edge.com/WFC-16102014

John Shrewsberry, Chief Financial Officer of Wells Fargo & Co. said that this was a strong quarter for Wells Fargo and again demonstrated the benefits of the company's diversified business model. Despite the low interest rate environment, revenue and pre-tax pre-provision profit increased linked quarter, the company continued to operate within its target ranges for return on assets (ROA), return on equity (ROE), efficiency ratio, and capital return to shareholders. Mr. Shrewsberry further stated that the company also remains well positioned to benefit from higher rates in the future, and its balance sheet has never been stronger, with higher levels of capital and liquidity, and improved asset quality.

The Company purchased 48.7 million shares of its common stock during Q3 FY14 and an additional 19.8 million shares are expected to settle in Q4 FY14 through a forward repurchase transaction. The company also paid a quarterly common stock dividend of $0.35 per share, compared to $0.30 per share last year. Visit Investor-Edge and access the latest research on WFC at:

http://www.Investor-Edge.com/WFCEarningsCoverage

Stock Performance 

On the day of the earnings release, October 14, 2014, Wells Fargo & Co.'s stock ended the session at $48.83, down 2.73% and on the last close, Wednesday, October 15, 2014, it finished at $47.85, further losing 2.01% for the day. The stock vacillated between $46.44 and $48.52 during the session. A total of 37.55 million shares were traded, which was much above its three months average volume of 13.96 million shares. Over the previous three trading sessions and last one month, the company's shares have declined 5.51% and 7.87%, respectively. However, the stock has gained 5.4% from the beginning of 2014. Shares in Wells Fargo & Co. are trading below their 50-day and 200-day moving averages of $51.28 and $49.51, respectively. Furthermore, the stock traded at a PE ratio of 11.73 and has a Relative Strength Index (RSI) of 31.64.

Sneak Peek to Corporate Insider Trading 

In last one month, there were four transactions made by four insiders on a single day. On October 01, 2014, Stephen W. Sanger and Donald M. James, Directors at Wells Fargo & Co., bought 853 and 444 shares of the company, respectively, at a price of $51.26 per share, along with other directors, Lloyd H. Dean and John D. Baker II, who purchased 161 and 717 shares of the company, respectively, on the same day at a price of $51.26 per share. Complimentary in-depth research on WFC is available at:

http://www.Investor-Edge.com/WFCInsiderTrading

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