WFC Wells Fargo and Company

By Emily Glazer 

Wells Fargo & Co. is expected to report its first-quarter results before the market opens Friday. Here's what you need to know.

1. Higher Earnings Expected

Analysts are expecting Wells Fargo to post per-share earnings of $1.06 for the quarter, according to Thomson Reuters, compared with $1.00 in the year-earlier period.

2. Revenue May Slip Though

Revenue of $21.73 billion is forecast, compared with the roughly $22 billion reported in the year-earlier quarter.

3. Tax Overhaul Boost

Unlike most other big banks, the new U.S. tax law caused Wells Fargo to record one-time gains to profit in the fourth quarter. Investors will be poised to find out if there are further impacts to the bank's business from the tax overhaul and how the first quarter fared without other one-time impacts from divestitures or litigation.

4. Clarity on Cost Cuts

Wells Fargo has been under pressure to cut costs after a consistent rise over the past several quarters. In mid-January, finance chief John Shrewsberry said 2018 expenses would likely range between $53.5 billion and $54.5 billion. Wells Fargo shared an ambitious yearslong $4 billion cost-cutting plan at its investor day presentation around a year ago, but it has operated well above its so-called efficiency ratio for the past six quarters.

5. Sales Problems Lingering?

Investors will be looking for more information on the latest problems Wells Fargo is tackling in its wealth-management unit. The bank is also likely to settle with the Office of the Comptroller of the Currency over issues related to risk management, which led to problems like improperly charging customers for auto-lending and mortgage services.

Write to Emily Glazer at emily.glazer@wsj.com

(END) Dow Jones Newswires

April 12, 2018 13:14 ET (17:14 GMT)

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