Wells Fargo will report earnings before tomorrow's open
Wells Fargo & Co (NYSE:WFC) is slated to report first-quarter results before the market's open tomorrow, and analysts are estimating profits to range between 95 cents and $1.38 per share.
Over the last eight quarters, Wells Fargo stock has had a positive earnings reaction six times. In the last two years overall, WFC averaged a 3.8% move the day after earnings, regardless of direction. This time around, the options market is pricing in a slightly larger 5.6% next-day swing.
Should history be any indicator, this could bode well for Wells Fargo stock, which is continuing to distance itself from a March 24 crater to more than two-year lows. Ahead of the event, WFC was last seen 0.7% higher at $39.47, following news that Saul Van Beurden will take over as CEO of the firm's Consumer & Small Business Banking Unit. Year-to-date, the security is down 4.4%.
Analysts are relatively bullish toward the stock, with nine out of 13 rating it a "buy" or better. The 12-month consensus price target of $48.59, meanwhile, is a 23.1% premium to Wells Fargo stock's current level of trading.