Wells Fargo beats earnings target, falls short on revenue

Wells Fargo & Co. shares fell 1.6% in premarket trades on Thursday after the bank said its first-quarter earnings dropped to $3.67 billion, or 88 cents a share, from $4.64 billion, or $1.02 a share, in the year-ago quarter. Revenue fell to $17.59 billion from $18.53 billion in the year-ago quarter. The Wall Street earnings target for Wells Fargo is 81 cents a share on revenue of $17.78 billion, according to FactSet. The latest quarter includes a decrease of $1.1 billion, or 21 cents a share, in the allowance for credit losses. CEO Charles Scharf said efforts by the U.S. Federal Reserve to tame inflation “will certainly reduce economic growth” along with the impact of the war in Ukraine adding downside risk to the economy. Prior to Thursday’s trades, Wells Fargo shares are up 1.2% so far in 2022, compared to a drop of 6.7% by the S&P 500 and a loss of 4.5% by the Financial Select SPDR ETF .

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