Why Wells Fargo's Revenue Miss Isn't Worrying Wall Street
Wells Fargo is one of the best S&P 500 stocks Wednesday even after the big bank's top-line miss. Here's what you need to know.

Wells Fargo (WFC) is one of the best S&P 500 stocks Wednesday after the financial services company beat profit expectations for its fourth quarter and issued a strong outlook for fiscal 2025.
In the quarter ending December 31, Well Fargo said its revenue slipped 0.5% year over year to $20.4 billion. Its earnings per share (EPS) increased 66.3% from the year-ago period to $1.43.
"Our solid performance this quarter caps a year of significant progress for Wells Fargo," said CEO Charlie Scharf in a statement. "Our earnings profile continues to improve, we are seeing the benefit from investments we are making to increase our growth and improve how we serve our customers and communities, we maintained a strong balance sheet, we returned approximately $25 billion of capital to shareholders, and we made significant progress on our risk and control work."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. While Wells Fargo fell short of the $20.6 billion in revenue Wall Street anticipated, its earnings per share came in above the $1.35 per share analysts guided for, according to CNBC.
Included in the shareholder-friendly initiatives Wells Fargo undertook during the fourth quarter was the repurchase of roughly 57.8 million shares for approximately $4 billion, bringing its total repurchases in 2024 to approximately $20 billion. Stock buybacks are another way for corporations to boost value for shareholders.
For the full fiscal year, Wells Fargo said it expects to achieve net interest income growth of 1% to 3% over 2024's figure of $47.7 billion.
Wells Fargo's impressive EPS beat "along with a strong statement about continued growth and productivity gains lifted guidance more than expected," says Brian Mulberry, client portfolio manager at Zacks Investment Management. "This is evidence that the expense management project continues to pay dividends on the balance sheet, combined with better net interest income results boosting revenues by as much as 3% demonstrates that WFC is in a strong balance sheet position."
Is Wells Fargo stock a buy, sell or hold?
Wells Fargo has outperformed the broader market over the past 12 months, up 60% on a total return basis (price change plus dividends) vs the S&P 500's 24% gain. Unsurprisingly, Wall Street remains bullish on the financial stock.
According to S&P Global Market Intelligence, the average analyst target price for WFC stock is $77.30, representing implied upside of nearly 3% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm BofA Securities is one of the more bullish outfits on the large-cap stock, calling it a "top pick" in the banking industry, along with a Buy rating and $84 price target.
"We remain bullish on bank stocks and expect the group to build on 2024 gains and outperform the S&P," wrote BofA Securities analyst Ebrahim Poonawala in a January 7 note, adding that the outperformance would be driven by several factors, including solid earnings-per-share growth, discounted valuation and increased ownership.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
13 Things Medicare Gives You for Free
Medicare beneficiaries often pay monthly premiums, copays, annual deductibles and prescription drug costs. But what you may not know is that some services don’t cost anything at all.
By Kathryn Pomroy Published
-
Trump Buyout Offer Paused by Judge Before Deadline: What Employees Should Know
Law & Politics The federal deferred resignation program accepted by thousands of workers continues to cause confusion and concern. Now the courts are involved.
By Kelley R. Taylor Published
-
Trump's Sovereign Wealth Fund: What Is It And How Does It Work?
President Trump signed an executive order that puts in motion plans for a U.S. sovereign wealth fund. Here's what a sovereign wealth fund is and how it works.
By Charles Lewis Sizemore, CFA Published
-
Honeywell Stock Is at the Bottom Of the Dow After Split News
Honeywell is the worst Dow Jones stock Thursday as the industrial conglomerate's weak outlook offsets news that it is splitting into three separate companies.
By Joey Solitro Published
-
Roblox Stock Plunges After Bookings, Users Fall Short of Expectations
Roblox stock is down Thursday after the gaming company came up short on key metrics for its fourth quarter. Here's what you need to know.
By Joey Solitro Published
-
Eli Lilly Stock Rises After Profit, Outlook Top Expectations
Eli Lilly stock is higher Thursday after the pharma giant beat fourth-quarter profit expectations and issued strong 2025 guidance. Here's what you need to know.
By Joey Solitro Published
-
Qualcomm Stock Drops After Its Earnings Beat. Here's Why
Qualcomm stock is lower Thursday even after the chipmaker reported strong earnings and gave an encouraging outlook. This is what investors need to know.
By Joey Solitro Published
-
The Best ROI? Investing in Yourself This Year
If personal growth is something you invest in only after taking care of all other priorities, it's time to turn that mindset on its head. Here's how to start.
By Frank J. Legan Published
-
The Four Worst Mistakes to Make When Selling Your Business
From ignoring potential buyers to failing to consider what you'll do once you've stopped working, here are the key mistakes to avoid when selling a business.
By Evan T. Beach, CFP®, AWMA® Published
-
Stock Market Today: Stocks Waver as Big Tech Slumps on Spending Concerns
Markets seesawed amid worries over massive costs for artificial intelligence and mixed economic news.
By Dan Burrows Published