Have you been eager to see how The PNC Financial Services Group (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 $2.72, beating the Zacks Consensus Estimate of $2.58. Results were aided by increased net interest income and non-interest income, partially offset by higher expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for PNC Financial depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last seven days.
Also, PNC Financial has an impressive earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in all the trailing four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.6% in the trailing four quarters.
The PNC Financial Services Group, Inc Price and EPS Surprise
Revenue Came In More Than Expected
PNC Financial posted revenues of $4.32 billion for the second quarter, increasing 6.5% year over year. Also, the reported figure surpassed the Zacks Consensus Estimate of $4.25 billion.
Key Stats for Q2:
- Net interest margin expanded 5 basis points to 2.96% on a year-over-year basis.
- Provision for credit losses came in at $80 million, down 18% year over year.
- Average loans came in at $222.7 billion, up 3% year over year.
- PNC Financial completed its common stock repurchase programs of $2.4 billion, for the four quarters ended second-quarter 2018.
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. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this PNC Financial earnings report!
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