Wells Fargo posted weaker-than-expected quarterly earnings per share, sending its shares down on Tueaday.
For the third quarter, the financial services company reported earnings of 92 cents a share, which was well below analysts’ expectation of $1.23 a share. According to Wells Fargo, its bottom-line took a major hit from $1.6 billion, or 35 cents a share, an amount set aside to cover litigation costs of "previously disclosed retail sales practices matters."
The company’s revenue for the quarter came in at $22 billion (higher than the year-ago quarter’s $21.9 billion), and above the $21.1 billion estimate of analysts polled by FactSet.
Wells Fargo is reeling from a string of scandals involving past marketing and sales practices, and it remains to be seen how far its incoming CEO Charles Scharf will be able to extricate the company out of its chequered past and push it towards a more positive direction.