PNC Financial (PNC) Beats on Q4 Earnings & Revenues - Tale of the Tape
Have you been eager to see how The PNC Financial Services Group, Inc. (PNC) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Pittsburgh, PA-based money center bank’s earnings release this morning:
An Earnings Beat
PNC Financial came out with earnings per share of $1.84, beating the Zacks Consensus Estimate of $1.74.
Results were aided by lower provisions. However, week top line was on the downside.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for PNC Financial depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 0.6% lower over the last 30 days.
However PNC Financial has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.5% in the trailing four quarters.
Revenue Came In Higher Than Expected
PNC Financial posted revenues of $3.9 billion, which beat the Zacks Consensus Estimate of $3.8 billion. However, it compared unfavorably with the year-ago number of $4.1 billion.
Key Developments to Note
In the year 2014, PNC Financial added customers, raised loans and deposits, fee income as well as capital. It lowered expenses also. Though in the short-term, revenue environment looks challenging, the company is well-positioned to carry out its strategic initiatives in 2015.
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.
How the Market Reacted So Far
Following the earnings release, PNC Financial shares were marginally up in the pre-trading session. This is in contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this PNC Financial earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
