This morning, financial-services name Wells Fargo reported fourth-quarter net income of $2.18 billion, or 64 cents per share, from $1.93 billion (57 cents per share) in the previous year. This amounts to net growth of 13 percent during the period. Revenue rose 11 percent to $9.4 billion. Analysts were expecting per-share earnings of 64 cents on $8.96 billion in revenue.
WFC officials attributed these gains to strong revenue growth, improved operating margins, and a solid balance sheet. Earnings from community banking rose nine percent during the quarter, wholesale banking earnings rose 14 percent, and Wells Fargo Financial earnings surged 64 percent.
In other news , Bear Stearns has announced plans to buy WFC's direct and indirect Latin American consumer finance subsidiaries. The transaction will be for an undisclosed sum.
In trading action before the open, WFC shares are higher by almost 1.5 percent. For the past several sessions, the stock has been consolidating sideways in the direction of its 10-month moving average. This long-term trendline is perched below the equity near the 35 level. Directly overhead, meanwhile, are the stock's 10-week and 20-week moving averages, which recently completed a bearish crossover. A positive reaction to this morning's earnings report could lift the stock above these dueling trendlines.