👨🏻💼 Wells Fargo shares started to recover in the second half of 2019. That might be partly due to a sentiment boost as investors cheered the hiring of a new CEO. Change is afoot at WFC since Charlie Scharf arrived as the bank’s new chief executive officer in October, Bloomberg reported. He’s held many meetings with executives, grilling them about the ways they do business. That’s likely key for the company, considering it’s been under scrutiny for years about its business practices following the fake accounts scandal a few years back.
🗯 Scharf has been publicly quiet since taking over, but that’s likely to change Tuesday when WFC reports Q4 results. At that point, investors could get a better sense of his plans to continue winning back customer trust. Analysts who talked to Bloomberg said they expect some executive changes at WFC, and added that the company needs to overhaul technology and improve earnings. Scharf has a good reputation in the banking world and a strong track record.
📊 Wells Fargo is expected to report adjusted EPS of $1.12, vs. $1.09 in the prior-year quarter, on revenue of $20.12 billion, according to third-party consensus analyst estimates. Revenue is expected to be down 4.1% year-over-year.
📉 Options traders have priced in a 2.5% stock move in either direction around the coming earnings release, according to the Market Maker Move indicator.