Earnings Review and Highlights - Wells Fargo

LONDON, January 21, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on Wells Fargo & Co. (NYSE: WFC). On January 14, 2015, the company reported its Q4 FY14 and full-year FY14 financial results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Wells%20Fargo&d=21-Jan-2015&s=WFC to read our free earnings review on Wells Fargo & Company (Wells Fargo). During Q4 FY14 and FY14, the company's total revenue improved 4% Y-o-Y and 1% Y-o-Y, respectively. Further, Wells Fargo's net income in Q4 FY14 and FY14 grew 2% Y-o-Y and 5% Y-o-Y, respectively. Chairman and CEO, John Stumpf, said that Wells Fargo had another strong year in 2014, with continued strength in the fundamental drivers of long-term performance such as growing customers, loans, deposits and capital. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Wells%20Fargo&d=21-Jan-2015&s=WFC

Earnings Overview 

During Q4 FY14, Wells Fargo total revenues increased to $21.44 billion from $20.67 billion in Q4 FY13, driven by an increase in net interest income. The company's total revenues for Q4 FY14 outperformed Bloomberg analysts' forecast of $21.25 billion. Net interest income in Q4 FY14 improved to $11.18 billion from $10.80 billion in Q4 FY13. Further, net non-interest income increased to $10.26 billion from $9.86 billion in Q4 FY13. The free research on WFC can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Wells%20Fargo&d=21-Jan-2015&s=WFC

In Q4 FY14, net interest margin stood at 3.04% compared to 3.27% in Q4 FY13. Wells Fargo's net income increased to $5.71 billion, or $1.02 per diluted share, in Q4 FY14, from $5.61 billion, or $1.00 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected the company to report net income of $5.36 billion, or $1.01 per diluted share, in Q4 FY14. The company reported return on assets (ROA) of 1.36% and return on equity (ROE) of 12.84% in Q4 FY14 compared to ROA of 1.48% and ROE of 13.81% in Q4 FY13.

As on December 31, 2014, Wells Fargo's common equity tier 1 ratio under Basel III (Advanced Approach, fully phased-in) was 10.44%. In Q4 FY14, the company purchased 61.6 million shares of its common stock, and it entered into a $750 million forward repurchase transaction for an additional estimated 14.3 million shares, expected to settle in Q1 FY15. During Q4 FY14, Wells Fargo paid a quarterly dividend of $0.35 per share, up from $0.30 per share in Q4 FY13. Sign up and read the free analyst's notes on WFC at:

http://get.Investor-Edge.com/pdf/?c=Wells%20Fargo&d=21-Jan-2015&s=WFC

For FY14, the company reported total revenues of $84.35 billion compared to $83.78 billion in FY13. Wells Fargo's total revenues for the year outperformed Bloomberg analysts' forecast of $84.30 billion. In FY14, net interest income increased to $43.53 billion from $42.80 billion in FY13. Additionally, net non-interest income stood at $40.82 billion in FY14 compared to $40.98 billion in FY13.

In FY14, Wells Fargo reported net interest margin of 3.11% compared to 3.40% in FY13. The company's net income increased to $23.06 billion, or $4.10 per diluted share, in FY14, from $21.88 billion, or $3.89 per diluted share, in FY13. Analysts from Bloomberg had expected the company to report net income of $21.79 billion, or $4.10 per diluted share, in FY14. For FY14, Wells Fargo's ROA and ROE stood at 1.45% and 13.41%, respectively compared with ROA and ROE of 1.51% and 13.87%, respectively, in FY13. During FY14, the company returned $12.5 billion to shareholders through dividends and net share repurchases, up from $7.2 billion in FY13. Visit Investor-Edge and access the latest research on WFC at:

http://get.Investor-Edge.com/pdf/?c=Wells%20Fargo&d=21-Jan-2015&s=WFC

Mr. Stumpf asserted that as the U.S. economy continues to build momentum, he is optimistic that the company's diversified business model will continue to benefit all its stakeholders in FY15. Further, CFO, John Shrewsberry, added that the fourth quarter was a great example of the benefit of the company's diversified business model and reflected a continuation of the solid results generated all year.

Stock Performance 

On the day of the earnings release, January 14, 2015, Wells Fargo's stock ended the session at $51.25, down 1.16%. However, on the last close, Tuesday, January 20, 2015, it finished at $52.00, up 0.70% for the day. The stock vacillated between $51.70 and $52.30 during the session. A total of 17.45 million shares were traded which was above its three months average volume of 16.18 million shares. Over the previous three trading sessions and last three months, the company's shares have advanced 1.46% and 5.73%, respectively. Further, the stock has gained 12.09% in the past one year. Shares in Wells Fargo are trading above their 200-day moving average of $51.62. Furthermore, the stock traded at a PE ratio of 12.68 and has a Relative Strength Index (RSI) of 40.01.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were two insider transactions made by two individuals. On January 01, 2015, a total of 921 shares have been bought at an average price of $54.82 per share and for a total value of $50,500. These transactions were done by John D. Baker II and Lloyd H. Dean, Directors at Wells Fargo, who purchased 743 and 178 shares, respectively. Complimentary in-depth research on WFC is available at:

http://get.Investor-Edge.com/pdf/?c=Wells%20Fargo&d=21-Jan-2015&s=WFC

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