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Wells Fargo & Co. (WFC), through its subsidiaries, provides retail, commercial, and corporate banking services primarily in the United States. The company operates in three segments: Community Banking; Wholesale Banking; and Wealth, Brokerage, and Retirement.

Wells Fargo & Co. is scheduled to report its second quarter earnings results on July 13, 2012, before market open.

Technical Overview

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Wells Fargo has a market cap of $177.91 billion and it is currently trading around $33.48 with a 52-week range of $22.58 to $34.59. The stock has risen 20.21% year to date. The following table provides the key financial ratios for Wells Fargo:

Key RatioValue
PEG1.1
P/E11.51
Forward P/E9.15
Profit Margin20.32%
Return On Assets (ROA)1.30%
Return On Equity (ROE)12.14%

Recent News

  • On July 5, 2012, Wells Fargo announced that the NeighborhoodLIFT program, a major effort to help stabilize neighborhoods deeply affected by the foreclosure crisis, is coming to Jacksonville.
  • On June 25, 2012, Wells Fargo announced that it had reached a definitive agreement to acquire WestLB's subscription finance portfolio.
  • On June 21, 2012, Wells Fargo announced that the NeighborhoodLIFT program, a major effort to help stabilize neighborhoods deeply affected by the foreclosure crisis, was coming to Orlando.
  • On June 14, 2012, Wells Fargo doubled its ExpressSend® remittance network payout locations in India through an agreement with HDFC Bank (HDB).
  • On June 12, 2012, Wells Fargo was named "Best Trade Bank in the USA" by Trade Finance magazine for the second consecutive year,
  • On June 5, 2012, Wells Fargo announced that the NeighborhoodLIFT program, a major effort to help stabilize neighborhoods deeply affected by the foreclosure crisis, is coming to Tampa.
  • On May 30, 2012, Wells Fargo and United Way Worldwide announced a five-year, $5 million national effort to provide multi-year financial counseling for low- and moderate-income (LMI) households.
  • On May 14, 2012, Wells Fargo announced that it had named Yvette Hollingsworth Chief Compliance Officer.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $21.28 billion when compared to $20.39 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 81 cents a share, up from 70 cents a share in the year-ago period.

The average price target from analyst for Wells Fargo is $37.98 with average rating of OVERWEIGHT.
Out of the last 4 quarters, Wells Fargo has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Wells Fargo:

Competition

JPMorgan Chase & Co.(JPM), Bank of America (BAC), Citigroup (C) and Goldman Sachs (GS) are considered the major competitors for Wells Fargo and the table below provides the key metrics for these companies:

Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Source: Earnings Preview: Wells Fargo & Co.