S&P 500 (NYSE:SPY) component PNC Financial Services (NYSE:PNC) will unveil its latest earnings on Wednesday, July 18, 2012. PNC Financial Services Group 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 profit of $1.13 per share, a decline of 32.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.53. Between one and three months ago, the average estimate moved down. It also has dropped from $1.50 during the last month. Analysts are projecting profit to rise by 4.9% compared to last year’s $5.88.
Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of $1.67 per share against a mean estimate of profit of $1.45 per share. In the fourth quarter of the last fiscal year, it missed forecasts by 2 cents.
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Stock Price Performance: Between April 17, 2012 and July 12, 2012, the stock price fell $3.06 (-4.8%), from $63.41 to $60.35. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 7.7% (+$4.42) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 6.4% (-$4.20) over that span.
A Look Back: In the first quarter, profit fell 3.8% to $805 million ($1.44 a share) from $837 million ($1.57 a share) the year earlier, but exceeded analyst expectations. Revenue was unchanged at $4.08 billion.
Wall St. Revenue Expectations: On average, analysts predict $3.71 billion in revenue this quarter, a rise of 3.1% from the year-ago quarter. Analysts are forecasting total revenue of $15.19 billion for the year, a rise of 6% from last year’s revenue of $14.33 billion.
On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 9.1% in the second quarter of the last fiscal year, 5.3% in the third quarter of the last fiscal year and 11.1% in the fourth quarter of the last fiscal year before climbing in the first quarter.
After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 24.6% in the third quarter of the last fiscal year, by 42.2% in the fourth quarter of the last fiscal year and again in the first quarter.
Analyst Ratings: With 18 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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