Wells Fargo is set to announce its Q3 earnings tomorrow, with Wall Street analysts predicting a rise in earnings per share (EPS) to $1.24, up from $0.85 in the same quarter last year. The company's revenue is also expected to increase to $20.09 billion, a climb from last year's Q3 earnings of $19.51 billion, according to a report automatically drafted by RoboEddy on Thursday.
InvestingPro data reveals that the company's market cap stands at 145.22B USD with a P/E ratio of 9.99. The revenue for the last twelve months leading up to Q2 of 2023 was 75.61B USD, indicating a stable financial performance. The company's diluted EPS (Cont. Ops) for the same period was 3.95 USD, providing a more nuanced understanding of its profitability.
The most accurate estimate for the current quarter stands at $1.27 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, resulting in a Zacks Earnings ESP of +2.11%. Given Wells Fargo's Zacks Rank #3 (Hold) status and a positive ESP, there's a 70% probability of a positive surprise. This could potentially lead to over 28% average annual returns.
For the current fiscal year, the bank is forecasted to yield a profit per share of $4.79 and total sales of $81.20 billion, marking an increase from the previous year's earnings of $3.14 per share and sales of $73.79 billion.
InvestingPro Tips highlight that Wells Fargo's management has been aggressively buying back shares, which is generally a positive sign of the company's confidence in its own stock. Additionally, 7 analysts have revised their earnings upwards for the upcoming period. This, coupled with the fact that the company has maintained dividend payments for 53 consecutive years, indicates a strong financial position. For more insights like these, consider subscribing to InvestingPro, which offers a vast array of additional tips.
Investors can keep track of Wells Fargo's real-time stock price on Markets Insider for a comprehensive market view as the earnings release date approaches. With the next earnings date set for 2023-10-13, investors will be keenly watching the performance of this prominent player in the Banks industry.
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