Wells Fargo & Co. (NYSE: WFC) is set to release its second-quarter earnings before the markets open on Tuesday morning. The Thomson Reuters consensus estimates call for $1.03 in earnings per share (EPS) on $21.69 billion in revenue. In the second quarter of last year, the bank posted ESP of $1.01 and revenue of $21.07 billion.

The company’s share price rose just 3.4% in the second quarter, the smallest gain among the big banks. The bank’s revenue growth is predicated on increases in service charges, fees and mortgage banking. Investment banking is likely to be a soft spot. Wells Fargo’s forward price-to-earnings (P/E) ratio is 12.58 and its price-to-book ratio is 1.71.

Wells Fargo was reported as having over $350 million in overdraft fees for the first quarter. The three largest banks collectively generated $1.14 billion from overdraft fees and related service charges during this time alone. At the same time, Wells Fargo topped all other major banks in ATM fees collected with $90 million. This was according to SNL Financial.

During the second quarter, the banking giant announced that its quarterly common stock dividend would rise to $0.375 per share. This is an increase of $0.025 per share, which generates a payout hike of 7% from the prior quarter. The new dividend payout will be $1.50 per share on an annualized basis. With a $56.50 share price, Wells Fargo has a dividend yield of 2.65%.

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A few analysts weighed in on Wells Fargo ahead of its earnings:

• Normura reiterated a Buy rating with a $66 price target.
• Credit Suisse reiterated an Outperform rating with a $65 price target.
• Bernstein has a Market Perform rating with a price target of $58.

Shares of Wells Fargo were up 0.8% to $56.50 Monday morning. The stock has a consensus analyst price target of $58.54 and a 52-week trading range of $46.44 to $58.26.

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