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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 $72.8 billion. It is expected to announce its fiscal Q3 earnings for 2024 before the market opens on Tuesday, October 15.
Ahead of the event, analysts expect PNC Financial Services to report an EPS of $3.27, down 9.2% from $3.60 per share reported in the year-ago quarter. The stock has consistently surpassed Wall Street’s EPS projections over the past four quarters. Its $3.30 adjusted earnings for the last reported quarter exceeded the consensus estimates by 10%.
Looking ahead to fiscal 2024, analysts expect PNC Financial Services’ EPS to decline 6.8% to $13.14 from $14.10 in fiscal 2023. However, fiscal 2025 EPS is projected to rebound, growing 10.8% annually to $14.56.
PNC stock has gained 19.4% on a YTD basis, trailing behind the S&P 500 Index’s ($SPX) 20.8% returns and the S&P 500 Financials Sector SPDR’s (XLF) 20.5% gains during the same time frame.
PNC's underwhelming price performance can be attributed to its high expense base, which is driven by technology investments. Additionally, PNC’s loan portfolio is heavily concentrated, with about 66.5% in commercial loans. This lack of diversification raises concerns amid a challenging macroeconomic environment that affects commercial lending.
On the bright side, the recent Federal Reserve rate cut is expected to boost PNC Financial's net interest income (NII) growth. Additionally, the bank remains focused on enhancing its business through strategic initiatives and key partnerships.
The stock gained 4.7% on Jul. 16 following its Q2 earnings report that surpassed expectations.
The consensus opinion on PNC Financial Services stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 11 advise a “Strong Buy” rating, one gives a “Moderate Buy,” eight suggest a “Hold,” and the remaining two recommend a “Moderate Sell.”
The average target price for PNC Financial Services is $189.30, indicating a potential upside of 2.4% from the current price levels.
On the date of publication, Kritika Sarmah 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.
