Wells Fargo Beats Them
Forget about BofA when Wells Fargo & Company (NYSE:WFC) is blowing the lid off their earnings season. The company is claiming a very strong outlook. Foreclosures are still part of their business, but the bank is claiming it is sound.
Over the past 12 months Wells Fargo & Co (WFC) shares have traded between a 52-week low of $23.02 and its 52-week high of $34.25. Wells Fargo & Co shares are now trading with a P/E Ratio of 14.9 and EPS of 1.64.
WFC shares are trading at $25.03, up 1.93% or $0.48 and volume is currently at 40.62M shares traded.
(CNNMoney.com) -- Wells Fargo reported its highest quarterly profit ever Wednesday, and said its "sound and accurate" practices meant it does not need a freeze on foreclosures.
Third-quarter earnings for the bank came in at $3.34 billion, or 60 cents per share, compared to $3.24 billion, or 56 cents, a year earlier.
According to Thomson Reuters, analysts expected the bank to earn 55 cents per share for the quarter.
Shares of Wells Fargo (WFC, Fortune 500) were down by about 2% ahead of the opening bell.
While some of its competitors have been ensnared in the fallout from the foreclosure document mess, the San Francisco based bank is proceeding with foreclosures.
In its release, the bank reiterated that it has no plans to institute a foreclosure moratorium because its "practices, procedures and documentation" in its housing business are sound.
In fact, the mortgage business is rebounding. The bank brought in $194 billion in new loan applications in the third quarter, its second highest quarter for mortgage applications ever.
While profit reached a record level, revenue decreased from $21.4 billion in the second quarter to $20.9 billion in the third. About a third of that loss was due to changes in overdraft fee policy.
But the bank touted its progress integrating Wachovia, with CFO Howard Atkins calling the merger a "big success."
"The merger of these two companies has met or exceeded our expectations in terms of lower credit losses, more abundant revenue synergies and integration savings," Atkins said in a statement.
Wells Fargo's results follow better-than-expected profits from rivals Citigroup (C, Fortune 500) and JPMorgan Chase (JPM, Fortune 500). On Tuesday, Bank of America (BAC, Fortune 500) reported a $7.3 billion loss, due in large part to a one-time charge in its credit and debit card unit.
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