Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Wells Fargo    WFC

WELLS FARGO (WFC)
Mes dernières consult.
Most popular
  Report  
Delayed Quote. Delayed  - 07/20 10:03:30 pm
56.41 USD   +0.14%
07/20WELLS FARGO : Contributes $250,000 for New York Area Housing, Revita..
BU
07/19REPORT : Wells Fargo charged customers for hidden services
AQ
07/19WELLS FARGO IN : Wsj
RE
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Wells Fargo : High-Court Ruling Creates Uneasiness -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/14/2018 | 08:48am CEST

By Michael Rapoport

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (July 14, 2018).

Wells Fargo & Co. said Friday it was hit in the second quarter with a $481 million tax expense related to a legal decision.

What was behind that? Turns out it was the recent U.S. Supreme Court ruling affecting online retailers, which is also reaching out to hit non-retailers as well.

The case, which involved South Dakota and retailer Wayfair Inc., doesn't seem at first blush as if it would affect a bank like Wells Fargo, or extend beyond sales taxes. The court ruled in June that states could require online retailers to collect sales taxes even if they didn't have a physical presence within the state.

But some observers have suggested the decision might change the landscape on state income taxes as well, and that businesses might have to reconsider whether they're now liable for state income taxes in states where they do business but don't have physical operations.

The Wayfair ruling "creates additional risk for companies in the income tax arena," said Stephen Kranz, a tax attorney at McDermott Will & Emery in Washington.

The ruling may embolden states to pursue businesses for income taxes in the same way they can now require collection of sales taxes. "I think states are more likely to take an aggressive approach on income taxes now that they have the Wayfair decision," said David Pope, an attorney at Baker & McKenzie LLP in New York.

Wells Fargo said the $481 million expense was due to adjustment of its state income tax reserves following the Wayfair ruling. Because of the ruling, some Wells affiliated entities may be considered to be subject to state income taxes even if they aren't physically present in a given state, John Shrewsberry, Wells' chief financial officer, said on the bank's earnings conference call.

In addition to the sales-tax impact, the decision "has an income tax implication as well," Mr. Shrewsberry said.

The $481 million expense from the ruling equates to 10 cents a share, contributing to Wells missing analysts' earnings estimates for the quarter. Wells had second-quarter earnings of 98 cents a share, down from $1.08 a share in the year-ago quarter and falling short of the $1.12 estimate of analysts polled by Thomson Reuters. Wells would still have missed estimates without the tax expense from the ruling, however.

Both businesses and states are still feeling their way in addressing the implications of the Wayfair ruling, and there is likely to be plenty of uncertainty and questions to be resolved going forward. "I think the states are digesting this just as much as taxpayers are," Mr. Pope said.

Write to Michael Rapoport at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WELLS FARGO
07/20WELLS FARGO : Contributes $250,000 for New York Area Housing, Revitalization Eff..
BU
07/19WELLS FARGO & COMPANY/MN : Financial Statements and Exhibits (form 8-K)
AQ
07/19REPORT : Wells Fargo charged customers for hidden services
AQ
07/19WELLS FARGO IN PROCESS OF REFUNDING : Wsj
RE
07/18Morgan Stanley caps strong earnings season for big U.S. banks
RE
07/18Morgan Stanley CEO declares broker recruiting wars over
RE
07/18BANK OF AMERICA : Wells Fargo closing its flagship Charleston branch, 2 other SC..
AQ
07/18WELLS FARGO : Free Research Report as Wells Fargo's Q2 FY18 Net Interest Income ..
AC
07/17WELLS FARGO : Big Bank Mortgage Results Hurt by Spring Real Estate Market
AQ
07/17NO BARRIERS WARRIORS, WELLS FARGO AN : The Journey Continues’ Team
AQ
More news
News from SeekingAlpha
07/20Banks again lead the way in expected dividend hikes 
07/19My Dividend Growth Portfolio - Q2 2018 Summary 
07/19BANK OF AMERICA AND WELLS FARGO : Growth Versus Income 
07/19Weak Asset Sensitivity Offsetting Improving Efficiency At U.S. Bancorp 
07/19WELLS FARGO SAID TO BE REFUNDING CHA : Wsj 
Financials ($)
Sales 2018 86 619 M
EBIT 2018 30 148 M
Net income 2018 20 640 M
Debt 2018 -
Yield 2018 2,90%
P/E ratio 2018 13,08
P/E ratio 2019 10,84
Capi. / Sales 2018 3,17x
Capi. / Sales 2019 3,13x
Capitalization 274 B
Chart WELLS FARGO
Duration : Period :
Wells Fargo Technical Analysis Chart | WFC | US9497461015 | 4-Traders
Technical analysis trends WELLS FARGO
Short TermMid-TermLong Term
TrendsBullishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 61,2 $
Spread / Average Target 8,5%
EPS Revisions
Managers
NameTitle
Timothy J. Sloan President, Chief Executive Officer & Director
Elizabeth A. Duke Independent Chairman
John R. Shrewsberry Chief Financial Officer & Senior Executive VP
Scott Dillon Chief Technology Officer
John Daniel Baker Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
WELLS FARGO-7.02%274 489
JP MORGAN CHASE & COMPANY4.06%379 735
BANK OF AMERICA2.07%305 499
INDUSTRIAL AND COMMERCIAL BANK OF CHINA-16.45%264 773
CHINA CONSTRUCTION BANK CORPORATION-17.19%227 228
HSBC HOLDINGS-6.75%187 214