Filed Under: ,
Tickers in this Article: PNC
PNC Financial Services GroupThe (NYSE:PNC) announced its results for the third quarter on October 16, 2012. PNC Financial Services Group offers corporate and institutional banking, retail banking, asset management, residential mortgage banking, and global investment services.

Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings.SEE: Surprising Earnings Results

The Numbers:

PNC Financial Services Group managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported $1.64 per share versus the $1.60 per share estimate and revenues of $4.09 billion versus the $3.71 billion estimate. EPS rose 5.8% while revenue climbed 15.3% from the same period last year. PNC Financial Services GroupThe reported net income of $925 million during the third quarter. This is 11.4% higher than the year-ago quarter. After posting a profit last quarter, the company breaks a streak of four consecutive quarters of year-over-year profit drops.

 

Management Quote:

"PNC reported excellent results for the third quarter with 2012 shaping up to be another good year," said James E. Rohr, chairman and chief executive officer. "On the strength of our products, brand and execution we continued to increase the number of customers we serve resulting in revenue and loan growth. We also remained focused on controlling costs while investing for the future and managing risk and capital. As a result, PNC is well positioned to continue to create shareholder value."

 

A Look Back:

Net income has dropped 19.7% year-over-year on average across the last five quarters. Performance was hurt by a 42.2% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

 

Looking Ahead:

Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.63 a share to $1.64 over the last 30 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is now $5.74 per share, down from $6.29 60 days ago.

 

comments powered by Disqus

Trading Center