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The PNC Financial Services Group, Inc. (PNC), headquartered in Pittsburgh, Pennsylvania, provides banking and asset management services, with a market cap of $61.9 billion. It is expected to announce its fiscal Q2 earnings for 2024 before the market opens on Tuesday, July 16.
Ahead of the event, analysts expect PNC Financial Services to report an EPS of $3, down 10.7% from $3.36 per share reported in the year-ago quarter. The stock has consistently surpassed Wall Street’s EPS projections over the past four quarters.
Although its adjusted earnings for the last reported quarter declined 15.6% year over year to $3.36 per share, it exceeded the consensus estimates by 8.7%. PNC Financial Services experienced a decline in both net interest income (NII) and non-interest income by approximately 9% and 6.8%, respectively, leading to declining net revenue and profit.
Looking ahead to fiscal 2024, analysts expect PNC Financial’s EPS to decline 10.4% to $12.63 from $14.10 in fiscal 2023. However, fiscal 2025 EPS is projected to grow 12.3% annually to $14.18.
PNC stock has gained just 1.2% on a YTD basis, trailing behind the S&P 500 Index’s ($SPX) 14.6% returns and the S&P 500 Financials Sector SPDR’s (XLF) 9.9% gains during the same time frame.
Amid economic uncertainty and the Federal Reserve’s uncertainty about cutting interest rates, financial institutions have been navigating choppy waters. On April 16, PNC stock took a 2% hit after revealing a profit drop in its Q1 earnings, attributed to weaker interest income and the rising costs of holding customer deposits in a high-rate environment. Adding fuel to investor worries, PNC Financial projected a decline in NII for Q2, casting further doubt on its profitability outlook.
The consensus opinion on PNC Financial Services stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 11 advise a “Strong Buy” rating, one gives a “Moderate Buy,” nine suggest a “Hold,” and the remaining two recommend a “Moderate Sell.”
The average target price for PNC Financial Services is $167.68, indicating a potential upside of 7.4% from the current price levels.
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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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