Pittsburgh, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company. With a market cap of $76.5 billion, the company provides regional banking, wholesale banking, and asset management services nationally and in the company's primary regional markets. The company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Jan. 16.
Ahead of the event, analysts expect PNC to report a profit of $3.29 per share on a diluted basis, up 4.1% from $3.16 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect PNC to report EPS of $13.49, down 4.3% from $14.10 in fiscal 2023. However, its EPS is expected to rise 10.2% year over year to $14.87 in fiscal 2025.
PNC stock has outperformed the S&P 500’s ($SPX) 23.3% gains over the past 52 weeks, with shares up 24.5% during this period. However, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 28.5% gains over the same time frame.
PNC's recent success can be attributed to factors such as the Federal Reserve's decision to lower interest rates, which is expected to boost loan demand and stabilize funding costs. Additionally, the bank's expansion efforts, including opening new branches and renovating existing ones, will solidify its position as one of the largest retail banks in the U.S. PNC's collaborations with companies like Plaid and TCW Group also show its commitment to strengthening its business and gaining a foothold in the expanding fintech industry.
On Oct. 15, PNC shares closed up more than 2% after reporting its Q3 results. Its EPS of $3.49 surpassed consensus estimates of $3.29. The company’s revenue was $5.43 billion, surpassing analyst estimates of $5.37 billion.
Analysts’ consensus opinion on PNC stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” seven give a “Hold,” and two recommend a “Moderate Sell.” PNC’s average analyst price target is $217.29, indicating a potential upside of 12.7% from the current levels.
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