Why the PNC Q4 Earnings Report Is Better Than Expectedhttp://www.fool.com/investing/general/2013/01/17/why-the-pnc-q4-earnings-report-is-better-than-expe.aspx Amanda Alix
January 17, 2013
There were a few nice surprises in PNC Financial's (NYSE: PNC) Q4 earnings report today, and from the rise in the stock price this morning, the news was music to investors' ears. Even though the bank reported a $0.47 charge to its earnings per share, a little probing shows that the big regional bank has some juicy tidbits to share with its investors -- not the least of which is a revenue increase of 15% and an EPS jump that was still 46%.
More mortgage-related charges
Digging in, the EPS of $1.24, though lower than estimates, is not as bad as it seems. Taking the announced charge out of the picture gives earnings of $1.71 per share, or $1.55 if PNC's gain on the sale of its Visa shares is factored in. That is more than respectable, and here's another biggie: The bank's return on equity jumped to 7.48% from a measly 5.7% one year ago.
A big acquisition is pulling its weight