Wells Fargo Confirms Robust Earnings

Analysts were circumspect about the initial results, which blew away their estimates by a long shot. But on Wednesday, even some of the most cynical had good things to say.

R. Scott Siefers, an analyst with Sandler O'Neill struck a more bullish tone in a report on Wednesday, calling it a "strong" quarter, with core earnings at 48 cents per share, when stripping out unusual items -- "a few times higher than we had expected it to be prior to the pre-release."

Siefers maintained a hold rating, saying he has "mixed feelings," and doesn't expect shares to sail much higher given the recent rally. He also cited an outlook for a continued climb in credit costs, as well as the unlikelihood that huge benefits from the first-quarter mortgage boom will be sustained over the long-term.

Nonetheless, "the company is printing good profitability at a time when much of the industry is struggling under a mountain of losses," Siefers writes. "Also, purchase accounting treatment from the [Wachovia] transaction affords the company a large degree of flexibility that others lack."

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