Wells Fargo & Co (NYSE:WFC), the American multinational banking and financial services holding company has published second-quarter bank earnings. Discussing his play options and Well Fargo position in a program on Bloomberg, KeeneOnTheMarket.com Strategist, James Ramelli, has discussed the company’s financials and the expectations for the earnings results.
“WFC is my favorite stock in the financial space, I definitely think they are best in breed, they have had 17 straight quarters of rising profits, well other competitors in this space have not been as impressive,” said Ramelli.
According to the report issued by Wells Fargo & Co (NYSE:WFC), the net income is $5.7 billion, up by 4% from second quarter 2013. Diluted earnings per share (EPS) of $1.01, up 3% whereas the revenue is $21.1 billion. Linked-quarter revenue is up $441 million according to the report. Ramelli said that nation’s largest mortgage provider was expected to report second-quarter earnings of $1.01 a share, which were in line with the forecasts. Wells Fargo & Co (NYSE:WFC) was also expected to report a depletion in the revenue. The consensus estimates suggested that there would be a revenue around $20.83 billion for the quarter.
Analysts will be keener to check that whether Wells Fargo & Co (NYSE:WFC) was able to curb a slowdown in mortgage refinancing due to rising rates. They will also be seeing the Wells Fargo & Co (NYSE:WFC)’s ability to increase exposure the commercial real estate and consumer credit in order to evaluate the company’s expected capacity in the coming days.
Ramelli also said that though the Wells Fargo & Co (NYSE:WFC) stock hasn’t offered much volatility, it can be still a great option for the investors to look forward to. He said that investors must stay put on this stock and must not sell off this in the market because there are high chances that the stock value will go up in the market in the coming days.