What's Going On With PNC Financial Shares Today?
Portfolio Pulse from Lekha Gupta
PNC Financial Services Group Inc (NYSE:PNC) reported first-quarter FY24 results with an 8% Y/Y revenue decline to $5.15 billion, missing consensus estimates. Net interest income and noninterest income both decreased, contributing to the revenue decline. Despite this, adjusted EPS was above consensus at $3.36. The company also declared a quarterly dividend of $1.55 per share. PNC expects FY24 revenue to be stable to down 2%, with net interest income declining 4%-5% Y/Y. Shares are down 1.88% in premarket trading. Exposure to PNC can also be gained through IShares U.S. Regional Banks ETF (NYSE:IAT) and Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).
April 16, 2024 | 12:51 pm
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NEGATIVE IMPACT
Investors can gain exposure to PNC Financial through the IShares U.S. Regional Banks ETF (NYSE:IAT), which may be impacted by PNC's Q1 FY24 performance.
As IAT provides exposure to PNC, the ETF may experience indirect effects from PNC's reported earnings miss and revenue decline. The impact is likely to be negative but moderated by the performance of other holdings within the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
PNC Financial reported a revenue decline and missed consensus estimates in Q1 FY24, but adjusted EPS was above expectations. Declared a quarterly dividend of $1.55 per share. Shares are down 1.88% in premarket trading.
The revenue decline and missed consensus estimates are likely to negatively impact investor sentiment in the short term, leading to a decrease in stock price. However, the higher than expected EPS and declared dividend may partially offset negative sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to PNC Financial through the Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV), which may be impacted by PNC's Q1 FY24 performance.
RDIV, which includes PNC as part of its holdings, may see indirect negative impacts from PNC's earnings miss and revenue decline. The overall effect will depend on the performance of RDIV's other holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50