Wells Fargo Q3 revenue of $21.4 bln beats estimates

Overview

• Wells Fargo Q3 revenue of $21.4 bln beats analyst expectations

• Reports Q3 EPS of $1.66

• Company repurchased $6.1 bln of common stock in Q3

Outlook

• Wells Fargo cites U.S. economic resilience as a positive factor for future performance

• Company highlights continued growth in debit and credit card spending

• Wells Fargo optimistic about long-term growth leveraging its strong franchise

Result Drivers

• NET INTEREST INCOME - Higher net interest income and broad-based growth in fee-based income drove revenue growth

• LOAN GROWTH - Highest linked-quarter loan growth in over three years contributed to balance sheet expansion

• CREDIT PERFORMANCE - Improved credit performance supported financial results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Wells Fargo & Co is $90.00, about 12.3% above its October 13 closing price of $78.92

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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