PNC Financial Posts Mixed Q4 Results; Shares Fall 2.4%

Financial and banking services provider PNC Financial Services Group, Inc. (NYSE: PNC) recently reported mixed results for the quarter ended December 31, 2021. Although earnings surpassed estimates comfortably, revenues missed the same.

Following the news, shares of the company dropped 2.4% to close at $216.88 on Tuesday.

Revenue & Earnings

PNC Financial reported earnings per share (EPS) of $3.68, up 12.5% from the previous year. The figure surpassed the consensus estimate of $3.20.

The company’s revenues witnessed a year-over-year rise of roughly 22% to $5.13 billion. This growth can be attributed primarily to the 18% and 27% rise witnessed in net interest income and noninterest income, respectively, over the prior year. However, revenues failed to surpass the consensus estimate of $5.14 billion.

Other Operating Metrics

The company reported an efficiency ratio of 74% for the quarter, which compares favorably to the efficiency ratio of 64% reported in the prior year.

However, the company’s net interest margin for the quarter decreased to 2.27% from 2.32% reported in the previous year. Similarly, the return on average common shareholders’ equity also witnessed a decline to 9.61% from 11.16% in the prior year.

Stock Rating

Wall Street’s Top Analysts have awarded PNC Financial a Moderate Buy consensus rating based on 6 Buys, 3 Holds and 1 Sell. The average PNC Financial price target of $228.39 implies upside potential of 5.3% from current levels. Shares have gained 39% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on PNC. Further, 5.2% of portfolios tracked by TipRanks increased their exposure to PNC stock over the past 30 days.

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