How’s Earnings Season Been for Buffett So Far?: American Express Company (AXP), International Business Machines Corp. (IBM)

2. Wells Fargo & Company (NYSE:WFC)

Oh, the Wells Fargo & Company (NYSE:WFC) wagon is a-comin’ down the street all right — and it did have a little something special to report. The banking giant (and No. 1 mortgage originator in the country) reported net profits increased by 24% in the fourth quarter. And a little something for you — a 14% dividend bump, which the company announced last week.

But there are some forces working against Wells. While the bank’s income boost may have resulted from increased fees from its mortgage and refinancing activities, all of the banks have been struggling with contracting net interest margins — the difference between the interest percentages a bank takes in though loans and gives out on deposits, etc. It was in this category that investors and analysts found the bank wanting — with really high expectations blurring some of their judgment on Wells as an investment.

Still waiting on No. 1

The Coca-Cola Company (NYSE:KO) isn’t scheduled to release earnings until February, but investors can see already that the fourth quarter was a good one for Buffett. As earnings season rolls on, be sure to make like Warren and keep tabs on how your company picks are making out. As most Fools know, short-term results (like an individual quarter) shouldn’t be the end-all be-all of your decision making, but the information you can garner from earnings reports and business plans make them useful research tools.

The article How’s Earnings Season Been for Buffett So Far? originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends American Express, Berkshire Hathaway, Procter & (NYSE:PG) Gamble, and Wells Fargo. The Motley Fool owns shares of Berkshire Hathaway, International Business (NYSE:IBM) Machines, and Wells Fargo.Contact Jessica here.

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