Wells Fargo & Co. (WFC) is expected to report Q4 results before the market open on Wednesday, January 20 with a conference call scheduled for 10:30 am ET.
GuidanceAnalysts are looking for EPS of (1c) on revenue of $21.97B. The consensus range is (16c)-10c for EPS, and $20.79B-$23.31B for revenue, according to First Call. A Ladenburg Thalmann analyst recently initiated Wells Fargo with a Buy rating. The analyst believes that Wells Fargo, along with Bank of America (BAC) and JP Morgan (JPM), is a "bionic bank" that will aggressively look to implement growth investments, dividend increases and share buybacks following its repayment of TARP last month. At least two other research firms were more upbeat about Wells Fargo last month following the bank's decision to repay TARP.
Analyst ViewsA Deutsche Bank analyst upgraded Wells Fargo to Buy from Hold, citing reduced uncertainty in the bank's outlook and his belief that the company would report better than expected Q4 results. The analyst increased his target to $36 from $29. Meanwhile, a Keefe Bruyette analyst responded to Wells' TARP repayment by upgrading the stock to Market Perform from Underperform .The analyst raised his target on the stock to $28 from $24. Investors will want to determine the potential impact on Wells Fargo of regulatory actions that Washington is preparing to unveil. Specifically, the FDIC is considering linking the amount of fees it charges banks to the methods the institutions use to compensate their executives, FDIC chairwoman Sheila Bair told CNBC on January 12. In addition, President Obama proposed a tax on financial institutions with assets of over $50B. Wells Fargo falls into that category.
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