Wells Fargo Reports Better Than Expected Q3 Results

Wells Fargo & Company (NYSE:WFC) reported its Q3 results, with EPS of $1.30 coming in better than the Street estimate of $1.10. Revenue was $19.51 billion, compared to the Street estimate of $18.75 billion. Net interest income was $12.10 billion, beating the $11.64 billion estimate. Return on tangible common equity was 9.6%, compared to the estimate of 12.2%.

Analysts at Oppenheimer, the company provided a nice beat, driven mainly by a net interest income beat and quarter-over-quarter positive operating leverage of approximately 10%. However, the sizable operating losses and reiteration that future related expenses could be significant further muddles the ongoing WFC turnaround story and associated cost savings expectations.