PNC Financial (PNC) stock is down today following the release of the financial services company’s Q4 2024 earnings report. The bad news comes from its guidance for Q1, which includes a 1% to 2% drop in revenue compared to Q4 2024. This would have its Q1 revenue range from roughly $5.45 billion to $5.51 billion. At a midpoint of $5.48 billion, this would match Wall Street’s Q1 revenue estimate.
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Even so, investors aren’t pleased about the prospect of revenue dropping quarter-to-quarter, which sent shares of PNC stock down 3.71% during pre-market trading. It likely doesn’t help that this comes with guidance for average loans dropping 1% while net interest income falls 1% to 2% during the quarter.
How Did PNC Do in Q4?
Guidance dragging PNC stock down is unfortunate as the company performed well in the fourth quarter of 2024. It reported earnings per share of $3.77, which was well above Wall Street’s $3.33 estimate. That’s also an 8% increase year-over-year from $3.49 per share.
Revenue reported by PNC Financial in Q4 2024 was $5.567 billion. That’s another beat compared to analysts’ estimate of $5.51 billion while climbing 2.49% year-over-year from $5.432 billion. Fueling this growth was net interest income jumping 3% to $3.5 billion and noninterest income rising $106 million to $175 million in Q4.
Is PNC Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for PNC Financial is Hold based on five Buy, five Hold, and two Sell ratings over the last three months. With that comes an average price target of $221.09, a high of $257, and a low of $199. This represents a potential 10.3% upside for PNC shares. These ratings and price targets will likely change as analysts update their coverage following the Q4 earnings release.
