Wells Fargo Q1 Earnings Beat EPS, Miss Revenue

Wells Fargo & Company reported first-quarter earnings that exceeded expectations on a per-share basis but fell short on revenue, leading to a sharp decline in its shares on Tuesday. The San Francisco-based bank posted net income of $5.3 billion, or $1.60 per diluted share, compared with $4.9 billion, or $1.39 per share, in the year-earlier period. While adjusted earnings beat analyst estimates of $1.57 per share, total revenue of $21.45 billion missed forecasts of $21.8 billion, even as it rose 6 percent from the prior year.

The results reflected steady growth across key areas amid a challenging interest rate environment. Net interest income increased 5 percent to $12.1 billion, supported by higher loan and deposit balances, lower deposit costs, and stronger performance in markets trading. However, it came in below the $12.3 billion anticipated by analysts, pressured by Federal Reserve rate cuts that reduced yields on floating-rate assets. Noninterest income climbed 8 percent to $9.35 billion, driven by gains in fee-based services, venture capital investments, and higher asset valuations in wealth management, though it also trailed projections slightly.