Wells Fargo & Co Earnings Rise; Beats Analysts Estimates (WFC)

Financial services company Wells Fargo & Co (WFC) reported a 10% increase in fourth quarter earnings on Tuesday as the decline in its mortgage business was offset by better expense controls.

WFC’s Earnings in Brief

WFC reported Q4 earnings of  $5.6 billion, or $1.00 a share, up from $4.86 billion or 91 cents per share last year. Revenue for the quarter dropped to $20.7 billion, from $21.9 billion a year ago. On average, analysts expected to see earnings of 98 cents per share and $20.69 billion in revenue.

CEO Commentary

WFC’s CEO John Stumpf commented: "Wells Fargo had another outstanding year in 2013, including strong growth in loans and deposits, and double-digit growth in earnings. In the five years since our merger with Wachovia, we have grown our businesses, invested in our franchise's future and contributed to the U.S. economy's recovery. Our 264,000 team members made it possible through their strong commitment to our consumer, small business and commercial customers, and the communities they serve around the world. Strong earnings power and capital levels, and an improving economic outlook are major reasons why we look ahead to 2014 with optimism.”

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WFC’s Dividend

Although the company made no mention of its next dividend payment, we expect WFC to declare its next 30 cent dividend by the end of January.

 Stock Performance

Wells Fargo shares were down 51 cents, or 1.12%, during pre-market trading Tuesday.