PNC Financial (PNC) earnings preview: solid organic revenue growth

12:20 am ET, 12 Jul 2018

PNC Financial Services Group, Inc. (PNC) is expected to report earnings on July 13 before market open.  The report will be for the fiscal quarter ending June 2018. The shares are trading at 136.00, up 0.31%.

What are the PNC earnings expectations?  What news will the market be watching out for?  

PNC has transformed itself since the financial crisis, with the integration of the troubled National City, the acquisition of RBC’s US branch network and subsequent growth throughout the Southeast, and updating its core infrastructure and retail branch model.  It doubled its size since 2008. 

PNC has also been very successful at organically expanding its customer base, largely in commercial banking, although some of the focus has now shifted back to retail. The expanding client base has led to solid loan, deposit, and fee income growth. Selling new products into the formerly underperforming RBC branch network has worked particularly well, and noninterest income now makes up roughly 45% of net revenue. 

PNC Financial Services Group Inc. has a history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 9 cents ($2.10 actuals vs. $2.01 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 3 cents ($2.16 actuals vs. $2.13 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 9 cents ($2.29 actuals vs. $2.20 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 1 cent ($2.43 actuals vs. $2.42 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 23% year-over-year to $2.58, while revenue is expected to grow 5% year-over-year to $4.26 billion.  

Over the last month, PNC Financial Services Group (PNC) returned -7.88%.

PNC Financial Services Group (PNC) average analyst price target ($160.69) is 18.15% above its current price ($136.00). For the latest price and information on PNC Financial Services Group, please visit Finstead and search for "PNC price" or "PNC news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

PNC Financial Services Group, Inc. (The) (PNC) Stock Guide

Updated at: 8:26 am ET, 22 Jul 2020

Before we start: if you're looking for PNC stock price, you can quickly find it out by visiting Finny and typing "PNC quote". If you're looking for a quick scoop on PNC stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "PNC". You'll get all this info in one place. Or you can just type "PNC news" to get the latest stock news.

Looking to buy or sell PNC Financial Services Group, Inc. (The) (PNC)? Interested in getting the full scoop on PNC, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this PNC stock guide, we'll address key questions about PNC, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are PNC earnings?
2. When is PNC earnings date?
3. What is PNC dividend?
4. What is PNC dividend yield?
5. What is PNC stock forecast (i.e., prediction)?
6. PNC buy or sell? What is PNC Finny Score?
7. What are the reasons to buy PNC? Why should I buy PNC stock?
8. What are the reasons to sell PNC? Why should I sell PNC stock?
9. What are PNC key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are PNC earnings?

PNC trailing 12-month earnings per share (EPS) is $10.75.

2. When is PNC earnings date?

PNC earnings date is October 14, 2020.

3. What is PNC dividend?

PNC forward dividend is $4.60.

4. What is PNC dividend yield?

PNC forward dividend yield is 4.75%.

Analyst Predictions

5. What is PNC stock forecast (i.e., prediction)?

Based on PNC analyst price targets, PNC stock forecast is $110.63 (for a year from now). That means the average analyst price target for PNC stock is $110.63. The prediction is based on 29 analyst estimates.

The low price target for PNC is $87.00, while the high price target is $140.00.

PNC analyst rating is Buy.

Analysis

6. PNC buy or sell? What is PNC Finny Score?

#{finnyScore:50}Our quantitative analysis shows 3 reasons to buy and 3 reasons to sell PNC, resulting in Finny Score of 50.

7. What are the reasons to buy PNC? Why should I buy PNC stock?

Here are the reasons to buy PNC stock:

  • PNC's ownership of a significant portion of BlackRock gives the bank an enviable stake in one of the best asset managers in existence, providing consistent income and diversification.
  • PNC's history of prudent lending and reputation as a conservative lender should serve the bank well through the next credit cycle.
  • Internal investments should increase operating leverage as back-end operational efficiency is improved. Investments in the universal bank model should position the bank well as the importance of retail branches changes.
  • PNC profitability is improving. The YoY profit margin change was 9.35 percentage points. See PNC profitability chart.
  • PNC forward dividend yield is 4.75%, higher than the industry (1.33%) and sector (1.09%) forward dividend yields. See PNC forward dividend chart.
  • PNC average analyst rating is Buy. See PNC analyst rating chart.

8. What are the reasons to sell PNC? Why should I sell PNC stock?

Let's look at the reasons to sell PNC stock (i.e., the bear case):

  • PNC needs to continually reinvest a majority of any cost savings achieved, casting doubt on when the ultimate benefits of those investments will be realized.
  • PNC continues to be significantly affected by many factors outside its control, including interest rates, the credit cycle, and economic conditions, all within a heavily regulated industry.
  • PNC's conservatism can lead to slower loan growth, and the bank has seen cost of deposit advantages erode over the past several years, partially due to retail account promotions.
  • PNC quarterly revenue growth was -12.10%, lower than the industry and sector average revenue growth (3.51% and 2.03%, respectively). See PNC revenue growth chart.
  • PNC short interest (days to cover the shorts) ratio is 1.74. The stock garners more short interest than the average industry, sector or S&P 500 stock. See PNC short interest ratio chart.
  • PNC Enterprise Value/Revenue multiple is 6.42, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See PNC Enterprise Value/Revenue chart.

Key Stats

9. What are PNC key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for PNC:

Metrics PNC
Price $109.62
Average Price Target / Upside $110.63 / 0.92%
Average Analyst Rating Buy
Forward Dividend Yield 4.19%
Industry Banks - Regional - US
Sector Financial Services
Number of Employees 53,063
Market Cap $46.57B
Forward P/E Ratio 15.13
Price/Book Ratio 3.28
Revenue (TTM) $14.18B
YoY Quarterly Revenue Growth -60.00%
Profit Margin 51.49%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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