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The PNC Financial Services Group, Inc (PNC) - free report >>
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The PNC Financial Services Group, Inc (PNC) - free report >>
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PNC Financial (PNC) Beats on Q2 Earnings, Revenues Down
Have you been eager to see how The PNC Financial Services Group, Inc. (PNC - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Pennsylvania-based money center bank’s earnings release this morning:
An Earnings Beat
PNC Financial came out with earnings per share of $1.82, easily beating the Zacks Consensus Estimate of $1.75.
Results were aided by increased net interest income and relatively stable expenses, partially offset by lower non-interest and higher provisions.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for PNC Financial depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved south slightly to $1.75 over the last 7days.
However, PNC Financial has a decent earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in three of the trailing four quarters.
PNC FINL SVC CP Price and EPS Surprise
PNC FINL SVC CP Price and EPS Surprise | PNC FINL SVC CP Quote
Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.1% in the trailing four quarters.
Revenues Came In Lower Than Expected
PNC Financial posted revenues of $ 3.79 billion, which lagged the Zacks Consensus Estimate of $3.82 billion. Also, revenues declined 2% year over year.
Key Stats for Q2:
Net Income: $989 million, down 5% year over year.
Net interest income: $2.1 billion, up 1% year over year.
Noninterest Income: $1.73 billion, down 5% year over year, mainly due to reduced revenues from asset management business.
Provision for credit losses: $127 million, up from $46 million in the prior year quarter.
Loans - Commercial lending: $137.0 billion, up 5% year over year
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for PNC Financial. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this PNC Financial earnings report!
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