Have you been eager to see how The PNC Financial Services Group, Inc. PNC) performed in Q3 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 $1.90, beating the Zacks Consensus Estimate of $1.78. Results were aided by stable expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for PNC Financial remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at $1.78 over the last 7 days.
Also, PNC Financial has a decent earnings surprise history. Before posting an earnings beat in Q3, the company delivered positive surprises in the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.8% in the trailing four quarters.
Revenue Came In Slightly Lower Than Expected
PNC Financial posted revenues of $3,775 million, which came slightly below the Zacks Consensus Estimate of $3,795 million. Also, it compared unfavorably with the year-ago number of $3,841million.
Key Stats for Q3:
- Provision for credit losses of $81 million increased 47% year over year.
- Loans in the Commercial lending portfolio were $131.2 billion, up 6% year over year
- Book value per common share at the end of Q3 was $ 81.42, up 6% year over year.
According to William S. Demchak, chairman, president and chief executive officer of PNC Financial, “PNC had a solid third quarter, our tenth consecutive quarter of $1 billion or more in net income, reflecting consistency without the benefit of higher interest rates.”
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.
Check back later for our full write up on this PNC Financial earnings report!
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