Wells Fargo Beats On Earnings, Posts Revenues In Line With Estimates

Wells Fargo & Co. reported better-than-expected results for the first quarter of its fiscal year 2014, beating expectations for EPS, while revenues were largely in line with estimates


Wells Fargo & Company (WFC) announced results for its first quarter of fiscal year 2014 (1QFY14) just before markets opened today, along with JPMorgan Chase & Co. (JPM) to kick off the earnings season for financial services companies. The San Francisco-based banking giant reported largely strong results on the back of lower loan losses and cost reductions, despite a sharp drop in mortgage originations.

Net income for the quarter ended March 2 rose 4% year-over-year (YoY) to $5.6 billion. Earnings per share (EPS) increased 14% YoY to $1.05, up from $0.92 in 1QFY13, and higher than analysts’ expectations of $0.96.

Revenues for America’s fourth largest bank based on assets declined 3% to $20.6 billion, down from $21.3 billion in the same quarter last year, and in line with the analysts’ estimates.