Wells Fargo & Company (NYSE: WFC) Chairman and CEO John Stumpf, who has an estimated net worth of $50 million, released the bank’s first quarter 2016 financial results this morning. The company reported earnings per share of $0.99, beating the Wall Street analyst estimate consensus of $0.98 by $0.01, or 1.02 percent, and gross revenues of $22.20 billion, beating the analyst consensus of $21.60 billion by $600 million, or 2.78 percent. Investors may listen-in to a 10 a.m. ET conference call at the Wells Fargo login.
The WFC EPS number equates to year-over-year of -4.81 percent. Wells Fargo’s revenues represent year-over-year growth of 4.32 percent.
Wells Fargo CEO John Stumpf was reported to have a net worth of $50 million by the Daily Mail, in 2014. Bloomberg reports that Stumpf received compensation of $19.3 million in 2015. Yahoo! Finance reports that the Wells Fargo CEO holds 1.9 million WFC shares, valued at $92.3 million; 202,271 shares of Chevron Corporation (NYSE: CVX), valued at $19.7 million; and 13,911 shares of Target Corp. (NYSE: TGT), valued at $1.1 million, suggesting that Stumpf’s net worth may have grown over the past few years.
Yesterday, it was reported that Wells Fargo’s living will, the company’s plan for resolution in a time of crisis without “wreaking financial havoc” was deemed insufficient by the Federal Deposit Insurance Corporation and the Federal Reserve Board, as reported by Charlotte Business Journal. Wells Fargo has been given until October 1 to present an acceptable plan. Wells Fargo responded with a release expressing disappointment with the findings, but expressing a willingness to forge a new plan by the specified date.
Heading into this morning’s release, analysts had been calling for Wells Fargo EPS growth of 1.00 percent in the second quarter of 2016 and 1.00 percent for the full year. In 2017, the analyst consensus view is for EPS growth of 7.60 percent. Growth of 9.45 percent annually is forecast for WFC EPS for the coming five years.
Views for today’s reported EPS figures had been reduced by 4.85 percent over the past 90 days from $1.03. For the second quarter, EPS views have been reduced by 5.45 percent, from $1.10 to $1.04, over the past 90 days. Over the same period, the full-year 2016 EPS street consensus for Wells Fargo has been brought down 4.99 percent, from $4.41 to $4.19, and the full-year 2017 view has been reduced from $4.78 to $4.51, or 5.65 percent.
Full-year 2016 Wells Fargo revenue estimates range from $86.86 billion to $92.86 billion; the average is $89.28 billion. Full-year 2017 revenue figures are forecast at $93.82 billion. If met, 2016 revenue estimates represent year-over-year growth of 3.70 percent and 2017 estimates represent growth of 5.10 percent.
At the close of 2015, Wells Fargo reported a profit margin of 27.36 percent and an operating margin of 42.85 percent. Management with the bank, which was founded in 1852, delivered a return on equity of 12.28 percent.
Also at the close of 2015, the company reported a cash position of $357.22 billion and debt of $310.98 billion. Wells Fargo has a debt-to-equity ratio of 103 percent, as reported by Investor’s Business Daily.
Like Bank of America, which also reported first quarter earnings this morning, as reported by the Inquisitr, Wells Fargo has dozens of outstanding debt issues with maturities stretching as far into the future as 2045, as reported by Morningstar.
Over the past 12 months, WFC stock has fallen 10.55 percent, compared with a loss of 1.15 percent for the Standard & Poor’s 500 Index (^GSPC). Over the past 10 years, shares of Wells Fargo have returned 47.75 percent, compared with 63.96 percent for the S&P 500.
WFC shares pay annual dividends of $1.50, currently yielding 3.19 percent.
Major institutional holders of Wells Fargo stock include Warren Buffett’s Berkshire Hathaway, index-fund giant The Vanguard Group, State Street Corporation, Capital World Investors, and FMR.
Wells Fargo price targets, from the 30 firms who publish them, range between $45 and $64 and average $55.57, or a 13.34 percent gain from yesterday’s closing price of $49.03. The mean recommendation among the firms is 2.3, where 1.0 is a strong buy and 5.0 is a sell; the mean recommendation is down from 2.4 last week.
Wells Fargo employs 264,700 employees who staff approximately 8,700 branches in 36 countries. The bank also provides its customers with mobile and online options to login, view, and manage accounts. CEO John Stumpf is aided by CFO John Shrewsberry, who received a total compensation of $9.0 million in 2015, and COO Timothy Sloan, who received total compensation of $11.0 million in 2015, as reported by Bloomberg.
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