Shareholders might have noticed that The PNC Financial Services Group, Inc. (NYSE:PNC) filed its first-quarter result this time last week. The early response was not positive, with shares down 5.0% to US$147 in the past week. The result was positive overall - although revenues of US$5.1b were in line with what the analysts predicted, PNC Financial Services Group surprised by delivering a statutory profit of US$3.10 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from PNC Financial Services Group's 17 analysts is for revenues of US$21.5b in 2024. This reflects an okay 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.7% to US$13.15. Before this earnings report, the analysts had been forecasting revenues of US$21.4b and earnings per share (EPS) of US$12.51 in 2024. So the consensus seems to have become somewhat more optimistic on PNC Financial Services Group's earnings potential following these results.
There's been no major changes to the consensus price target of US$168, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic PNC Financial Services Group analyst has a price target of US$199 per share, while the most pessimistic values it at US$150. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of PNC Financial Services Group'shistorical trends, as the 7.5% annualised revenue growth to the end of 2024 is roughly in line with the 8.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.8% per year. So although PNC Financial Services Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards PNC Financial Services Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$168, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for PNC Financial Services Group going out to 2026, and you can see them free on our platform here..
It might also be worth considering whether PNC Financial Services Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.