The shares trade for twice their tangible book value, according to HighlineFI, and for nine times the consensus 2013 earnings estimate of $3.67 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $3.26.
Based on a quarterly payout of 22 cents, the shares have a dividend yield of 2.67%.Wells Fargo reported first-quarter earnings of $4.2 billion, or a record 75 cents a share, beating the consensus EPS of 73 cents. The company reported a 21% quarter-over-quarter increase in mortgage banking revenue, to $2.9 billion, supporting total revenue of $21.6 billion, which exceeded the consensus estimate of $20.5 billion. Following a robust $129 billion in first-quarter mortgage loan originations, Chief Financial Officer Tim Sloan indicated that Wells Fargo would also have a strong second quarter for mortgage volume, saying that "the unclosed mortgage pipeline was solid at $79 billion at quarter-end." Wells Fargo reported total first-quarter noninterest expenses of $13 billion, increasing from $12.5 billion in the fourth quarter, and $12.7 billion during the first quarter of 2011. Sloan said that the company expects "a $500-$700 million overall reduction in noninterest expense during the second quarter." Miller rated Wells Fargo outperform with a $39 price target, and said on April 16 after the company reported its first-quarter results that "earnings quality was somewhat disappointing as expenses were higher than expected and management guided toward a higher run-rate, overall loan growth was nonexistent, and the
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