According to the Zhītōng Finance APP, Wells Fargo (WFC.US) will announce its second-quarter earnings before the opening of the U.S. stock market on Friday, July 14th. Wall Street expects Wells Fargo's revenue to be $20.08 billion, with earnings per share of $1.18. In comparison, the revenue for the same period last year was $17.03 billion, with earnings per share of $0.74.
Due to recent stress tests showing a reduction in capital requirements for large banks, investors have flocked to several large bank stocks in the past few weeks, driving up the KBW Regional Banking ETF (KBWR). Wells Fargo is one of several banks planning to increase shareholder dividends. The bank's stock price has risen 4% year-to-date, but it has underperformed the overall market's 15% increase.
However, the bank's execution has been much more stable than in previous years. Not only is its financial condition more stable, but its management has also been focused on reducing expenses and improving efficiency to increase profits. One of Wells Fargo's methods of reducing operating expenses is to reduce its workforce from 246,000 people at the end of March 2022 to 235,000 people at the end of March 2023. The layoffs have reduced non-interest expenses while increasing net interest income in the first quarter.
Although Wells Fargo's management remains cautious and is seeking to strengthen its loan portfolio, specifically mortgage and auto loans, the current valuation of the stock looks attractive based on improvements in its balance sheet, cost-saving measures, and an upcoming $20 billion share buyback plan. Nevertheless, Wells Fargo still needs to release an optimistic financial report on Friday to support this bullish view.

Citigroup will announce its second-quarter earnings before the US stock market opens on Friday, July 14th.

Earnings Preview | Improved Fundamentals Boost Market Confidence, Can Bank of Richland Q2 Earnings Support Optimism?