Wells Fargo & Co (NYSE:WFC) earnings will outperform in the second quarter, analyst Marty Mosby said in an interview on CNBC.
The comment from the Vining Sparks banking analyst as the financial firm is set to report its second quarter performance today. Mosby explained his opinion saying:
“We think there is a dichotomy amongst the banks. A lot of the headlines are centered on the money-center banks that would actually show a decline to the largest five. [However,] what we are going to actually see tomorrow is an actual super regional bank which has a franchise across the nation in Wells Fargo. We think that they can show a nice pickup in earnings actually as their revenue is about 6% and whole expenses is relatively flat.”
Asked what is behind the confidence in Wells Fargo & Co (NYSE:WFC) and whether the positive outlook on the stock will eventually end soon, Mosby said that when people look at the company, they can actually see that it has come through the tough spot it was in last year when mortgage origination started to fall off. He noted that the company made a strategic acquisition in the midst of the recession and financial crisis. He added that when all the other banks were consolidating and managing risk, Wells Fargo & Co (NYSE:WFC) was expanding. The firm has doubled its customer base and geographic reach, he said, and that we are only beginning to see the ripple effect of this move by the bank in terms of earnings surprises.
According to Mosby, people have seen 17 positive growth quarters from the bank and he expects to see another positive quarterly report today for Wells Fargo & Co (NYSE:WFC).
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Wells Fargo & Co (NYSE:WFC) shareholders includes Ken Fisher’s Fisher Asset Management which reported about 17.69 million shares in the company by the end of the first quarter of the year. Another shareholder is Tom Russo’s Gardner Russo & Gardner which reported about 14.69 million shares in the same quarter.