Is A Beat In Store For PNC Financial (PNC) In Q1 Earnings?

We expect The PNC Financial Services Group, Inc. (NYSE:PNC) to beat on earnings expectations when it reports first-quarter 2017 results, before the opening bell on Apr 13.

Why a Likely Positive Surprise?

Our proven model shows that PNC Financial has the right combination of two key ingredients – positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to beat earnings.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is pegged at +0.54%. This is a major indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PNC Financial carries a Zacks Rank #2 (Buy).

Further, the company boasts a decent earnings surprise history. PNC Financial posted an earnings beat in three of the trailing four quarters, with an average positive earnings surprise of 3.2%.

Shares of PNC Financial rallied 38.6% over the past one year, outperforming the Zacks categorized Banks – Major Regional industry’s 32.7% growth.

What’s in Store?

Management expects PNC Financial’s NII to remain stable in first-quarter 2017. However, on account of seasonality and lower client activity, fee income is likely to fall in the mid-single-digit range, per the company.

The company projects non-interest expense to fall sequentially by low-single digits. Further, it expects loan loss provision to be within $75–$125 million.

Period-end loans are projected to rise modestly during the quarter.

PNC Financial’s activities during the quarter were enough to win analysts’ confidence. As a result, over the last seven days, the Zacks Consensus Estimate for the quarter’s earnings increased slightly to $1.84.

Other Stocks to Consider

Here are some other stocks you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.

BancorpSouth, Inc. (NYSE:BXS) has an earnings ESP of +2.63% and a Zacks Rank #3. It is slated to report first-quarter results on Apr 19. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The earnings ESP for Sun Trust Banks, Inc. (NYSE:STI) is +2.41% and it carries a Zacks Rank #2. The company is expected to release first-quarter results on Apr 21.

BB&T Corporation (NYSE:BBT) has an earnings ESP of +5.71% and a Zacks Rank #3. It is scheduled to report first-quarter results on Apr 20.

Want to learn more about major banks earnings? Check out our recent video article for additional information:

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