What to Expect from Wells Fargo's Q1 Report

The company announced a new CEO for its Consumer & Small Business Banking Unit

Jake Scott

Deputy Editor

Apr 13, 2023 at 2:23 PM

Wells Fargo & Co (NYSE:WFC) is slated to report first-quarter results before the market's open tomorrow, and analysts are estimating profits to range between 95 cents and $1.38 per share.

Over the last eight quarters, Wells Fargo stock has had a positive earnings reaction six times. In the last two years overall, WFC averaged a 3.8% move the day after earnings, regardless of direction. This time around, the options market is pricing in a slightly larger 5.6% next-day swing.

Should history be any indicator, this could bode well for Wells Fargo stock, which is continuing to distance itself from a March 24 crater to more than two-year lows. Ahead of the event, WFC was last seen 0.7% higher at $39.47, following news that Saul Van Beurden will take over as CEO of the firm's Consumer & Small Business Banking Unit. Year-to-date, the security is down 4.4%.

WFC Chart April 132023

Analysts are relatively bullish toward the stock, with nine out of 13 rating it a "buy" or better. The 12-month consensus price target of $48.59, meanwhile, is a 23.1% premium to Wells Fargo stock's current level of trading.

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