PNC Financial Services GroupThe Earnings: Below Analysts’ Estimates

S&P 500 (NYSE:SPY) component PNC Financial Services GroupThe (NYSE:PNC) reported its results for the fourth quarter. PNC Financial Services Group offers corporate and institutional banking, retail banking, asset management, residential mortgage banking, and global investment services.

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PNC Financial Services GroupThe Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for PNC Financial Services GroupThe fell to $493 million (85 cents per share) vs. $820 million ($1.50 per share) a year earlier. This is a decline of 39.9% from the year earlier quarter.

Revenue: Revenue was $3.55 billion last quarter.

Actual vs. Wall St. Expectations: PNC fell short of the mean analyst estimate of $1.41 per share. Analysts were expecting revenue of $3.54 billion.

Quoting Management: “PNC had a solid year of accomplishments in a challenging regulatory and economic environment. We increased market share across our businesses by continuing to grow the number of customers we serve,” said James E. Rohr, chairman and chief executive officer. “We are leveraging our capital strength to expand into the southeast with a strategic acquisition and we remain focused on strong risk and expense management. In 2012, we are committed to building on our achievements so that we can deliver greater value to our shareholders, customers, communities and employees.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 6 cents, and in the second quarter, it was ahead by 20 cents.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from $1.41 a share to $1.45 over the last ninety days. For the fiscal year, the average estimate has moved up from $6.16 a share to $6.20 over the last ninety days.

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).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com