Wells Fargo shares traded 3.1% lower Friday, giving up earlier gains, as a weak profit outlook overshadowed stronger-than-expected quarterly earnings.
Earlier Friday, Wells Fargo shares had risen as much as 2.3% after the company reported strong earnings on the back of strong consumer transactions and a pick-up in auto loans.
Here’s how the company’s results compared with expectations in a Refinitiv survey of Wall Street analysts:
- Earnings: $1.20 per share vs $1.09 per share expected
- Revenue: $21.609 billion vs $21.012 billion forecast
Wells Fargo said credit card transactions totaled $18.3 billion in the quarter, up 5% from a year earlier, while debit card purchases increased by 6% to $86.6 billion. Auto loans surged 24% to $5.4 billion.
The bank also said it returned $6 billion to shareholders in the quarter through dividend payments and buybacks. It increased its quarterly dividend to 45 cents per share, up from 43 cents in the fourth quarter of 2018.