Well-Managed Wells Fargo Is Worth a Look
The merger master posted solid first-quarter growth.
After watching several high-profile bank mergers self-destruct last year, investors may be wary of San Francisco-based Wells Fargo (WFC), one of the industry's most active acquirers. But the company's solid first-quarter earnings report Tuesday demonstrates that Wells knows how to manage mergers.
Wells Fargo's 14% hike in profits, to $1.01 billion for the quarter, is an indication that the company is getting good results from its 1998 merger of equals between Wells Fargo and Norwest and the smaller deals that have come since. Earnings per share were $0.61, a penny above Wall Street's consensus estimate.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.