Benzinga | Apr 15, 2021 10:43AM EDT

Earnings Outlook For PNC Financial Services Gr

On Friday, April 16, PNC Financial Services Gr (NYSE:PNC) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on PNC Financial Services Gr management projections, analysts predict EPS of $2.75 on revenue of $4.11 billion. PNC Financial Services Gr reported a profit of $1.95 per share when it published results during the same quarter last year. Sales in that period totaled $4.52 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 41.03% increase in the company's earnings. Sales would be down 9.01% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 2.61 2.12 0.51 1.77EPS Actual 3.26 3.39 -1.90 1.95Revenue Estimate 4.14 B 4.00 B 4.11 B 4.38 BRevenue Actual 4.21 B 4.28 B 4.08 B 4.52 B

Stock Performance

Shares of PNC Financial Services Gr were trading at $179.3 as of April 14. Over the last 52-week period, shares are up 72.6%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. PNC Financial Services Gr is scheduled to hold the call at 09:00:00 ET and can be accessed here.