Did Wells Fargo third-quarter EPS miss analyst expectations?

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Wells Fargo's Third-Quarter Earnings Per Share Fell Short of Analyst Expectations

Wells Fargo reported a 26% decline in its third-quarter profit, with earnings per share (EPS) falling to 92 cents. This figure missed the analyst consensus expectation of US$1.15 per share. The bank's net income applicable to common stock for the third quarter ended September 30 was US$4.04 billion, a decrease from US$5.45 billion in the same period a year prior.
Third-Quarter Profit Decline

The lender's net income applicable to common stock for the third quarter ending September 30 was US$4.04 billion. This represents a significant drop from the US$5.45 billion reported in the third quarter of the previous year. Consequently, the earnings per share also decreased to 92 cents, compared to US$1.13 per share a year earlier.
Analyst Expectations

Prior to the announcement, analysts surveyed by IBES data from Refinitiv had projected a higher profit per share. The consensus expectation was for Wells Fargo to report earnings of US$1.15 per share for the third quarter. The reported figure of 92 cents per share indicates that the bank's actual performance was below these market expectations.
Impact of Legal Expenses

This profit decline occurred as Wells Fargo is bracing for additional legal expenses. These costs are tied to a sales practices scandal that first emerged over three years ago. While the specific impact of these anticipated expenses on the reported quarter's results is not detailed, the ongoing legal issues continue to weigh on the financial institution's profitability.
Leadership Change

In response to ongoing challenges, Wells Fargo appointed Charles Scharf as its new chief executive last month. Scharf, described as a protégé of Jamie Dimon and known for his operational streamlining skills, took the helm as the bank navigates its financial performance and the repercussions of past scandals.

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Did Wells Fargo third-quarter EPS miss analyst expectations?

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