JPMorgan Chase reported bumper results on Friday and touted a still-solid USA economy, while Wells Fargo slashed a key profit benchmark, sending its shares sharply lower. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the Thomson Reuters' consensus estimate of $1.17 by $0.04.
Analysts had expected earnings of $1.09 per share on revenue of $21.0 billion. Articles appear on euronews.com for a limited time.
Powell's comments, along with a poor performance in front of Congress last month, forced Wells Fargo's Chief Executive Officer Tim Sloan to unexpectedly and abruptly resign.
JPMorgan's news release included positive commentary on the USA economy, although the bank did boost its provisions for credit losses following downgrades on some commercial and industrial clients. Wells Fargo & Co's revenue was down 4.9% on a year-over-year basis.
On the day of 10-04-2019 (Wednesday), the Wells Fargo & Company, (NYSE: WFC) of industry, Money Center Banks have trading rating (Loss, ↓).
On a call to discuss the results, analysts repeatedly asked why the bank was lowering its net interest income outlook while peers remained more optimistic, and for details on how non-interest-related revenues from fees would shape up. Interim CEO Allen Parker said it has "more work ahead".More news: How Israel’s Netanyahu Uses Fear and Loathing to Win Elections
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Doing so could allay investor concerns that the bank is on track to meet its operational goals in a low-rate environment - something the new CEO would be happy about.
However, Wells Fargo also said it now expects net interest income to fall 2% to 5% this year from 2018.
Wells Fargo & Company has a current consensus target price of 56.6. But the longer-term outlook is less certain, since the bank suspended its expense targets for 2020 after Sloan's departure. Fees from mortgage banking, a bread-and-butter product for Wells Fargo, fell 24% to $708 million in the first quarter from $934 million a year earlier.
Wells Fargo's net income applicable to common stock rose reut.rs/2P8a214 to $5.51 billion, or $1.20 per share, from $4.73 billion, or 96 cents per share, a year earlier. The decrease from a year prior was due to a decline in the bank's noninterest income, which fell to Dollars 9.3 Billion.
Taking a peek at some Moving Averages, the 200-day is at 52.38, the 50-day is 49.25, and the 7-day is sitting at 48.48 for Wells Fargo & Company (NYSE:WFC). The bank reported quarter-over-quarter declines in auto, credit card and commercial loans. Revenue declined slightly to $21.6 billion from $21.9 billion. Average loans also decreased to United States dollars 950.1 Billion, falling by USD 876 Million a year prior. With markets still riding high, investors will be closely watching the numbers as companies start reporting quarterly earnings results. Finally, Commonwealth Bank of Australia lifted its holdings in Wells Fargo & Co by 12.8% in the fourth quarter.