Earnings Reports

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PNC Financial (PNC) reports second-quarter results on Friday, July 14 before the market opens. $PNC joins Citigroup (C), Wells Fargo (WFC) and JPMorgan (JPM) reporting Friday morning. Since Donald Trump won on Election Day has been a huge run higher on PNC and the other bank stocks.

Most recently, the banking sector received a boost after the largest U.S. banks passed Fed stress tests and were allowed to raise dividends and share buybacks. and were allowed to raise dividends and share buybacks. The $PNC board of directors announced a 36% hike to 75 cents a share in the company’s quarterly common stock dividend as a result.

PNC Financial Consensus Forecast
EPS Expected to have risen 10% to $2.01 per share on a 5.5% gain in revenue to $4.001 billion

The Fed has continued to raise rates, helping banks' finances. Caution hangs over the sector if congress can pass regulatory rollbacks after the GOP's unsuccessful attempt to replace the Affordable Care Act. Auto and student loans also overhang the banking and finance sectors.

The earlier bank rally had been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks.  The new surge in home prices has also buoyed optimism for the banking business and banks profits thereto.

What Analysts Think

Zacks Issued a Note Thursday on PNC

Revenue Growth: PNC Financial continues to make steady progress toward improving its top line. While a low-rate environment, though improving, is challenging for interest income growth, the company's fee income has grown at a five-year CAGR (2012–2016) of 3.6%, with a slight fall recorded in 2014 and 2016. The positive trend continued in first-quarter 2017.

The company’s projected sales growth (F1/F0) of 6.17% (as against the S&P 500 average of about 4.91%) indicates constant upward momentum in revenues.

Earnings Per Share Strength: Earnings are anticipated to display an upswing in the near term, as the company’s projected EPS growth (F1/F0) is 12.48% compared to the industry average rate of 11.50%. Also, PNC Financial recorded an average positive earnings surprise of 4.95%, over the trailing four quarters.

Prudent Expense Management: Though a marginal rise in non-interest expenses was experienced in 2016 as well as first-quarter 2017, expenses declined at a CAGR of 2.5% over the last five years (2012-2016). Further, PNC Financial successfully realized its 2015 and 2016 continuous improvement savings program ('CIP') goals of $500 million and $400 million, respectively. For 2017, management anticipates CIP target of $350 million.

Source: https://www.zacks.com/stock/news/266809/pnc-financial-pnc-declares-36-dividend-hike-time-to-buy

PNC Financial Services Group Inc NYSE PNC
Jul 7 Close 126.54 +0.53 (+0.42%)
Mkt cap 61.20B
P/E ratio 16.63
Div yield 2.37%
52 Week Range   80.83 - 131.83

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