PNC and Marsh & McLennan beat analyst profit forecasts for the third quarter

what happened

According to Earnings Summary, PNC Financial Services Group posted adjusted earnings of $4.97 per share for the quarter ended September 30, up from $4.35 a year earlier. The 21 analysts polled had expected $4.92. Revenue climbed 10.9% to $6.56 billion, against forecasts of $6.61 billion. The bank's quarterly net income came in at $1.99 billion.

Marsh & McLennan Companies reported adjusted earnings of $2.03 per share versus $1.85 a year earlier, beating the $1.97 mean estimate of 24 analysts. Revenue rose 8.1% to $6.86 billion, while the market had looked for $6.64 billion. Net income was $808 million, and reported EPS was $1.69.

PNC shares fell 2.9% over the quarter but are up 3.4% year to date. Marsh & McLennan shares gained 4.5% in the quarter yet are down 3.8% for the year. The average analyst rating is buy for PNC and hold for Marsh & McLennan. Median 12-month price targets sit at $275 for PNC, about 21.5% above its last close of $215.80, and $196.16 for Marsh & McLennan, about 9.1% above its last close of $178.40.

why it matters

The results matter for markets because both companies beat profit estimates, yet analysts trimmed earnings forecasts over the past three months, by about 0.1% at PNC and 0.5% at Marsh & McLennan. Five analysts cut PNC estimates and eight cut Marsh & McLennan estimates in the last 30 days, so investors will likely focus on whether these beats hold up and how expectations shift in coming reports.

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