Wells Fargo hit by legal charges, mortgage banking slump

Oct 14, 2017, 00:24
Wells Fargo hit by legal charges, mortgage banking slump

Earnings per share of $1.04, ex-items, vs. the $1.03 a share expected by analysts.

Wells Fargo & Company (WFC) reported sales (ttm) of 56.49 Billion, whereas, 22 number of analysts estimated the mean sale of 22535.6 million. Its profits fell almost 19 percent to $4.57 billion during the third quarter, compared with $5.64 billion during the same period a year ago, the company said Friday. Meanwhile, WFC's net interest margin was 2.87%, down 3 basis points sequentially from the second quarter.

"Over the past year we have made fundamental changes to transform Wells Fargo as part of our effort to rebuild trust and build a better bank", said Tim Sloan, the lender's chief executive. The current consensus recommendation provided by covering analysts is 2.60. For the quarter, shares have been noted at 0.40%.

Revenue fell 2 percent to $21.9 billion, hit by a 37 percent slump in mortgage banking and auto lending.

More notable recent Wells Fargo & Co (NYSE:WFC) news were published by: Reuters.com which released: "Senators grill Wells Fargo CEO over scandal, forced arbitration" on October 03, 2017, also Seekingalpha.com with their article: "Wells Fargo: More Public Backlash" published on September 27, 2017, Seekingalpha.com published: "Wells Fargo: Is It There Yet?" on September 11, 2017. The stock of Wells Fargo & Co (NYSE:WFC) has "Buy" rating given on Tuesday, September 5 by Robert W. Baird. Buckhead Limited Liability Corporation holds 1.24% of its portfolio in Wells Fargo & Co (NYSE:WFC) for 123,206 shares. $499,108 worth of Wells Fargo & Co (NYSE:WFC) was bought by SARGENT RONALD. The company has a 50-day moving average of $52.98 and a 200 day moving average of $53.58.

Earnings at the U.S. banking giant fell 20.2 percent to $4.2 billion, with the $1 billion in expenses related to "previously announced pre-crisis mortgage-related regulatory investigations".

But revenue at the bank also suffered from a decline in mortgage banking revenue. The company has market cap of $276.32 billion. Eight equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. A stock that maintains a relatively stable price has low volatility.

Wells Fargo & Co's Wealth and Investment Management division reported revenue of $4.25 billion in the third quarter of the year.

ILLEGAL ACTIVITY WARNING: This piece was originally posted by TrueBlueTribune and is the sole property of of TrueBlueTribune. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued. Delphi Private Advisors LLC boosted its stake in shares of Wells Fargo & by 262.8% in the 2nd quarter. If you are accessing this piece on another website, it was illegally stolen and republished in violation of global trademark & copyright laws. For the past 5 days of trading, the stock has seen a move of 1.27%. 38,988 Wells Fargo & Co (NYSE:WFC) shares with value of $2.05M were sold by Mack Mary T. The stock of Wells Fargo & Co (NYSE:WFC) earned "Hold" rating by Sandler O'Neill on Monday, April 11. Natl Investment Svcs Wi has invested 2.25% in Wells Fargo & Co (NYSE:WFC).

Wells Fargo has struggled to recover from a massive consumer sales scandal previous year that resulted in hundreds of millions of dollars in penalties and the resignation of then-CEO John Stumpf. The Firm is a diversified financial services company.