The San Francisco-based financial services company reported earnings of $1.03 per share, higher than analysts' expectations for earnings of $1.02 per share. Revenue rose 1% year-over-year to $21.6 billion, while analysts projected revenue of $21.8 billion.
Total average deposits during the fourth quarter rose by 6% year-over-year to $1.2 trillion, which was driven by commercial and consumer growth, Wells Fargo said in a statement.
Wells Fargo faced tough top-line comparisons over the last year due to prior quarters' strong gains, TheStreet's Jim Cramer and Jack Mohr said in a new Action Alerts Plus article this morning.
"We view this as a solid report from Wells Fargo as it demonstrated the bank's ability to grow key metrics, such as deposits and loans, while maintain industry-leading levels of net interest margins (despite the slight decline)," Cramer and Mohr said. "Importantly, the company was able to meet the rigorous capital levels set forth by banking regulations and still meet its goals."
Additionally, Wells Fargo should benefit from its domestic focus and increasing interest rates, Cramer and Mohr added.
"Wells continues to be best-in-class in an industry plagued by regulatory overhang," Cramer and Mohr said. "Its 3% yield offers attractive income amidst a volatile environment and while shares will likely be down sharply in today's session, this is more a result of the broader market sell-off than any fundamental cracks in the WFC investment thesis."
Wells Fargo stock is down 3.48% to $48.88 in early-morning trading on Friday as markets decline on China and oil-related news.
Separately, recently, TheStreet Ratings rated this stock as a "buy" with a letter grade of A-. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, WELLS FARGO & CO increased its bottom line by earning $4.10 versus $3.89 in the prior year. This year, the market expects an improvement in earnings.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WFCWFC data by YCharts