Wells Fargo Q1 Profit Sags 16%, but Beats View (WFC)


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Banking giant Wells Fargo & Company ( WFC ) said Wednesday that its first quarter profit plunged 16% from last year, hurt by integration costs and further loan losses.

The San Francisco-based company reported first quarter net income of $2.55 billion, or 45 cents per share, compared with $3.05 billion, or 56 cents per share, in the year-ago period.

Revenue rose 2% from last year, however, to $21.5 billion.

On average, Wall Street analysts expected a smaller profit of 42 cents per share, on slightly higher revenue of $21.71 billion

Wells said that provisions for credit losses jumped to $5.33 billion from $4.56 billion, but fell sequentially from the prior quarter.

Wells Fargo shares fell 51 cents, or -1.5%, in premarket trading Wednesday.

The Bottom Line
Shares of WFC have a dividend yield of .59%, based on last night's closing stock price of $33.69. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $35-$37 price levels. We would remain on the sidelines for now.

Wells Fargo & Company ( WFC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: WFC

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