How should traders approach WFC's upcoming earnings reports?

**Traders should approach Wells Fargo's upcoming earnings reports with a cautious optimism**, considering the following points:

1. **Expected Earnings and Revenue**: Wells Fargo is anticipated to report earnings per share (EPS) of $1.23 for the upcoming quarter, reflecting a 2.38% decline from the same quarter of the previous year. The projected revenue for the quarter is $20.82 billion, indicating a slight decrease of 0.21% year-over-year. For the full year, the consensus estimates earnings of $5.85 per share and revenue of $85 billion, suggesting potential growth of 8.94% and 3.29%, respectively, compared to the prior year.

2. **Recent Performance**: Wells Fargo's stock has experienced a decrease of 2.32% over the last month, underperforming the Finance sector's loss. The recent market close saw a 1.04% decrease in the stock price to $73.47, which is narrower than the S&P 500's daily loss.
3. **Earnings Release Dates**: The bank has updated its expected earnings release dates for 2025, with the first quarter earnings release on Friday, April 11, 2025. This timing will provide traders with an opportunity to react to the earnings report and its implications for the bank's performance.
4. **Analyst Expectations**: Analysts are closely monitoring Wells Fargo's performance, as evidenced by the adjustments in estimates. Recent changes in estimates often reflect analysts' views on the company's short-term business patterns, and these changes have been shown to correlate with stock price performance.
5. **Historical Performance**: Wells Fargo's stock surged by nearly 43% in 2024, and it has continued to show positive momentum, with a 6% increase in January 2025. This historical performance, along with the bank's strategic initiatives, could influence the outlook for the upcoming earnings reports.

In conclusion, while there are concerns about recent stock performance and year-over-year earnings declines, the anticipated earnings report and the bank's strategic initiatives provide a basis for cautious optimism. Traders should monitor the upcoming earnings report closely, considering both the anticipated results and the broader market context. The bank's ability to execute on its strategic plans and manage short-term challenges will likely influence investor sentiment and market reaction to the earnings release.