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Pittsburgh, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) is a diversified financial services company that provides consumer and business banking services. Valued at a market cap of $70.1 billion, the company also offers a wide range of wealth management products and services. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, Apr. 15.
Prior to this event, analysts expect this financial services company to report a profit of $3.42 per share, up 1.8% from $3.36 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in each of the last four quarters. Its earnings of $3.77 per share in the previous quarter outpaced the consensus estimate by a notable margin of 14.2%.
For fiscal 2025, analysts expect PNC to report a profit of $15.30, up 10% from $13.91 in fiscal 2024. Furthermore, its EPS is expected to grow 12.9% year over year to $17.27 in fiscal 2026.
PNC has outpaced the S&P 500 Index’s ($SPX) 8.9% gains over the past 52 weeks, with its shares up 12.4% during this period. However, it has underperformed the Financial Select Sector SPDR Fund’s (XLF) 20.4% returns over the same time frame.
Despite delivering stronger-than-expected Q4 EPS of $3.77 and revenue of $5.6 billion, shares of PNC closed down nearly 2% following its Q4 earnings release on Jan. 16. On the positive side, its revenue grew 3.7% year-over-year, while its bottom line surged 103.8%, thanks to higher fee income, increased Net Interest Income (NII) and lower non-interest expense. However, on the downside, its average loans fell 1.7% from the year-ago quarter. Additionally, net loan charge-offs rose by 25% and non-performing loans increased by 6.7%, further raising investor concerns and overshadowing the positives.
Wall Street analysts are moderately optimistic about PNC’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, 11 recommend "Strong Buy," one suggests a “Moderate Buy,” eight advise “Hold,” and two give “Moderate Sell” rating. PNC’s average analyst price target of $212.53, indicates a potential upside of 20.1% from the current levels.
