Closer Look: PNC Financial Services’ Upcoming Second Quarter Earnings

S&P 500 (NYSE:SPY) component PNC Financial Services (NYSE:PNC) will unveil its latest earnings on Wednesday, July 20, 2011. PNC Financial Services Group Inc. offers corporate and institutional banking, retail banking, asset management, residential mortgage banking and global investment services.

PNC Financial Services Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.47 per share, a decline of 8.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.42. Between one and three months ago, the average estimate moved up, and has risen from $1.46 during the last month. For the year, analysts are projecting profit of $5.97 per share, a decline of 1.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 20 cents, reporting net income of $1.57 per share against a mean estimate of profit of $1.37 per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.62 billion in revenue this quarter, a decline of 7.4% from the year ago quarter. Analysts are forecasting total revenue of $14.46 billion for the year, a decline of 4.7% from last year’s revenue of $15.18 billion.

Analyst Ratings: Analysts are bullish on this stock with 19 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 7.6% to $4.07 billion in first quarter. The figure fell 12.2% in the fourth quarter of the last fiscal year from the year earlier, dropped 14.2% in third quarter of the last fiscal year from the year-ago quarter and 10.4% in the second quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 99%. The quarter with the biggest boost was the second quarter of the last fiscal year, which saw a more than fourfold surge.

Competitors to Watch: Wells Fargo & Company (NYSE:WFC), Bank of America Corp. (NYSE:BAC), SunTrust Banks, Inc. (NYSE:STI), JPMorgan Chase & Co. (NYSE:JPM), KeyCorp (NYSE:KEY), Citigroup Inc. (NYSE:C), Regions Financial Corp. (NYSE:RF), BB&T Corporation (NYSE:BBT), First Horizon National Corp. (NYSE:FHN), and University Bancorp, Inc. (UNIB).

Stock Price Performance: During May 17, 2011 to July 14, 2011, the stock price had fallen $5.12 (-8.2%) from $62.38 to $57.26. The stock price saw one of its best stretches over the last year between November 30, 2010 and December 9, 2010 when shares rose for eight-straight days, rising 14.3% (+$7.62) over that span. It saw one of its worst periods between September 13, 2010 and September 22, 2010 when shares fell for eight-straight days, falling 9% (-$4.99) over that span. Shares are down $2.66 (-4.4%) year to date.

(Source: Xignite Financials)

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