Stock

Wells Fargo Q2 profit down 48%: Pro explains why stock is ‘very attractive’

Shares of Wells Fargo & Co (NYSE: WFC) are up 8.0% on Friday even after the financial services company reported a 48% hit to its Q2 profit and revenue that came in shy of Wall Street estimates.

Wells Fargo Q2 earnings snapshot

Net income printed at $3.12 billion versus the year-ago figure of $6.04 billionPer-share earnings of 74 cents were down significantly from $1.38 last yearOn an adjusted basis, EPS stood at 82 cents in the recent financial quarterRevenue tanked 16% YoY to $17.02 billion as per the earnings press releaseFactSet consensus was for 80 cents of adjusted EPS on $17.48 billion in revenueNet interest income jumped 16% on a 37 bps increase in net interest margin

According to Wells Fargo, the hit to revenue was primarily related to divestitures and a slowdown in mortgage banking. The stock is down more than 35% for the year.

Stephanie Link reacts to Wells Fargo Q2 results

Reacting to the earnings report on CNBC’s “Squawk Box”, Hightower’s Stephanie Link said the banks are in a much better position than they were in the Great Financial Crisis.

WFC is getting hit not only from markets but also mortgages. But they did a good job in expenses down 3.0%, loans up 8.0%. It’s a restructuring story. They’re focusing on cost cuts. Asset cap is an overhang, as soon as that’s lifted, it’ll be a nice catalyst.

Wells Fargo is trading at 0.9 times book, which, as per Link, is very attractive to own. Wall Street currently rates the stock at “overweight” with upside to $52.62 that translates to an over 25% increase in the stock price from here.

The post Wells Fargo Q2 profit down 48%: Pro explains why stock is ‘very attractive’ appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top