Wells Fargo results top forecasts, shares rise | Reuters
You got to love how media reports financial news in such skewed and manipulative way. There is nothing objective from such a headline. The headline celebrate Well Fargo's performance but there is nothing to celebrate. Its earnings are down some 23%. However the good news is they beat the forecasts.
Actually the whole thing is incestuous cycle. Analysts publish forecasts, which are given through management's "guidance", then media benchmarks results against those forecasts allowing management to manipulate the whole process. I am not saying that wells Fargo is doing this but I am talking in general.
Analysts numbers are garbage and provide no useful information as it is based on management biased "guidance". Analysts should be stripped of their title as they do not do analysis or add value in this situation. They just regurgitate data given to them by executives. Moreover analysts are saddled with other conflict of interest that stems from investment banking relationships, "sell" rating are seldom given to a company as you can be sure that whoever issued that sell rating is not getting any investment banking business.
When you hear an analyst speaks on TV recommending a stock or talking about earnings forecasts turn the TV off as 9.9 times out of 10 you will gain nothing useful.