Banking giant Wells Fargo & Company (
) 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
Wells Fargo shares fell 51 cents, or -1.5%, in premarket trading
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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