PNC Financial Services Group Inc. (NYSE: PNC) has confirmed the release date for its Q4 2021 earnings results, which will be on Tuesday, January 18, 2022, before markets open.
What to look for
Revenues and profitability are predicted to have increased year over year in the fourth quarter. The company's earnings beat expectations in the most recent quarter, thanks to greater service charges on deposits, asset management revenues, and corporate services. Higher costs and a shrinking margin, on the other hand, were disadvantages.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be around $3.6 per share. In the past quarter, the company produced an EPS surprise of 3.25% with an EPS of $3.75. Historical EPS Performance for the past 12 quarters shows the company has topped EPS estimates ten times (83%) and missed twice (16%).
Revenue: For the fourth quarter, the company expects revenue of $5.1 billion, indicating a YoY growth of 21.3%. The quarter's net interest income is pegged at $2.9 billion, representing a YoY growth of 18.8% attributed to average interest-earning assets increase. Asset management revenue is expected to be around $253 million indicating a 14.5% YoY increase.
Stock movement: PNC Financial shares have gained 11.1% since the company released its third-quarter earnings. Notably, PNC shares have been DOWN 26 times out of the past 48 quarters. So, the historical price reaction suggests a 54% probability of the share price going DOWN once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, while the predicted move on the seventh day is 3%.
What analysts are saying
JPMorgan analyst Vivek Juneja raised his price target on PNC Financial shares from $227 to $229.5 and maintained a “Buy” rating on the stock. Because of a substantial jump in industrial and commercial loan growth towards the end of Q4, Juneja advises investors in a research note that banks should start 2022 on a "positive note." Furthermore, the analyst believes that banks would get a "double advantage" in 2022 from both improved loan growth in the near term and Fed rate hikes in the medium term. Therefore, he keeps recommending bank stocks.
Barclays analyst Jason Goldberg upgraded PNC Financial shares from "Hold" to "Buy" and also raised the price target from $220 to $250. Goldberg told investors in a research note that PNC Financial has more interest-rate sensitivity and is likely to benefit in the near term from acquisition-related synergies relative to rivals.
UBS analyst Erika Najarian commenced coverage of PNC Financial with a Buy rating a price target of $240. In a research note to investors, the analyst claims that the company is "especially well-positioned" to gain from the increased corporate activity and rising interest rates. In addition, PNC's excellent management team and strong execution are equally "well-recognized" by the Street, according to Najarian.
Morgan Stanley analyst Betsy Graseck downgraded PNC shares from “Hold” to “Sell” with a price target of $209. While she is bullish on large-cap bank stocks in general, she urges investors to capitalize on the recent "flash sale," arguing that the revelation of the omicron form of COVID-19 only delays full recovery by a quarter. Accordingly, Graseck is downgrading PNC to "Sell" on value grounds. Graseck said she might become more bullish on the company in 2022 if BBVA transaction benefits exceed forecasts or if the institution redeploys its excess capital more swiftly.
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