What Will Wells Fargo Shares Do Post Earnings?

Wells Fargo (WFC) is expected to report earnings on Friday, January 13th. The whisper number is $1.02, two cents ahead of the analysts' estimate and showing some confidence from the WhisperNumber community. Whispers range from a low of $0.97 to a high of $1.10. WFC has a 39% positive surprise history (having topped the whisper in 19 of the 48 earnings reports for which we have data).

Earnings history:

  •  Beat whisper: 19 qtrs
  •  Met whisper: 1 qtrs
  •  Missed whisper: 29 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock's price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

The strongest price movement of +7.2% comes within ten trading days when the company reports earnings that beat the whisper number, and +2.2% within five trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is 'positive' (beat the whisper number and see strength, miss and see limited strength) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

The company has reported earnings ahead of the whisper number in two of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings one cent short the whisper number. Following that report the stock realized a 3.2% loss in five trading days. Last quarter the company reported earnings three cents ahead of the whisper number. Following that report the stock realized a 1.0% loss in one trading day, before turning and seeing a 17.8% gain in twenty trading days. Overall historical data indicates the company to be (on average within thirty trading days) a 'positive' price reactor when the company reports earnings.

Enter your expectation and view more earnings information here, or let us know your expectation in the comments section below. 

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