Earnings Preview: Wells Fargo

Wells Fargo Co. (WFC) is expected to report Q3 earnings before market open Wednesday, October 15, with a conference call scheduled for 8:30 am .

Guidance

Analysts are looking for EPS of 42c on revenue of $10.96B. The consensus range for EPS is 13c to 55c, while the consensus range for revenue is $10.21B to $11.53B, according to First Call.

The bank effectively won the battle to acquire Wachovia Corp. (WB) on October 9, and the Fed approved the transaction on October 12. Wells Fargo investors will try to ascertain tomorrow exactly how the Wachovia deal will affect the company going forward.

On October 3, Warren Buffett gave Wells Fargo a plug by noting that Wells and Berkshire Hathaway (BRK.A) are the only stocks he personally owns.

Two research firms also touted the bank in recent weeks. Baird upgraded Wells to Neutral from Underperform, citing what it sees as the bank's relatively strong balance sheet. Meanwhile, Ladenburg's Richard Bove named Wells as one of several "core" banks that will emerge from the credit crisis with additional strength. 

Comments

[Ishortyou:]

you can also add that in the meantime Wachovia will sell its bad loans under the government program and heal its banking book of business.

2008 Oct 14 01:55 PM

[Pfloyd234:]

Get out of WFC while you can. They have been up way too much lately and they will get hurt just like all the other banks!!

2008 Oct 14 04:03 PM

[DAD08:]

This company is perhaps the best positioned financial powerhouse going forward. As was the case last earnings-WFC will gap up tomorrow and ignite a sustainable and thunderous rally in the financials. Investors will begin to sense the worst of the crisis is now in the past. Wall Street is forward thinking. Expect a new higy tomorrow and a 50 handle by Friday.

Long WFC.

Good Trading to all.

2008 Oct 14 04:30 PM

[good2bet:]

Wells earnings will hit above analyst expectations, again this is a true fundlemental compnay that employs the best and brightest. Wells for tomorrow or long-term is a great play!

2008 Oct 14 07:32 PM

[Sugar Ray:]

Wells has 150+years business/banking experience. Wells will out live any of the top banks because they have the stickest mortgage underwriters in the industry (hence still profitable). They must have certainly benefited from the fall of Indy Mac Bank a few months back, with core deposits at levels I'm excited to see. " On October 3, Warren Buffett gave Wells Fargo a plug by noting that Wells and Berkshire Hathaway (BRK.A) are the only stocks he personally owns" Can I get a What What? Buy as much as you can, while it's still a reasonable price. I believe the world is about to see the only Bank you can trust long term!

2008 Oct 15 12:07 AM

[BerkeleyBob:]

Although I am a more or less contented WF customer, including the 15 year fixed mortgage on our Berkeley hovel (but an expensive hovel), I am a little skeptical of WF's "fortress bank" classification by Cramer because it has a large inventory of home equity lines of credit (HELOC). If those HELOCS are on houses in my neighborhood (no foreclosures in this zip code that I know of, decline in prices less than for Bay Area overall), no worries. If they are on a subdivision in Stockton or outer Contra Costa County, plenty worry. How good are the appraisals and how much cushion is there?

2008 Oct 15 02:46 PM

[Pfloyd234:]

Wow looking back.......i am good!!

Jun 25 09:53 AM