Pinnacle Financial (NasdaqGS:PNFP) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Pinnacle Financial Partners, Inc. (NasdaqGS:PNFP) is scheduled to report Q3 earnings results after markets close for trading on October 20, 2020.

The company is expected to report earnings of $1.10/share on revenue of $281.8 million. The consensus earnings per share (EPS) of $1.10/share is based on a poll of 9 analysts and represents a decline in eps of −24.4% over the same quarter last year, when the company reported earnings of $1.45/share.

The revenue forecast of $281.8 million based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 1.2%. Last year the company reported $278.4 million in revenue for the quarter.

Expected to report EPS contraction of −24.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $281.78 $278.43 1.2%
EPS $1.10 $1.45 −24.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from Pinnacle Financial Partners, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.84 $0.89 5.6% Beat
Q1, 2020 $1.05 $0.39 −62.9% Missed
Q4, 2019 $1.26 $1.27 0.9% Beat
Q3, 2019 $1.35 $1.45 7.8% Beat
Q2, 2019 $1.27 $1.42 12.2% Beat
Q1, 2019 $1.21 $1.22 1.1% Beat
Q4, 2018 $1.23 $1.25 1.8% Beat
Q3, 2018 $1.19 $1.21 1.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 4.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 21, 2020 $38.67 $40.52 4.8% Increase
April 20, 2020 $38.87 $35.15 −9.6% Decline
January 21, 2020 $63.39 $61.49 −3.0% Decline
October 15, 2019 $55.99 $57.99 3.6% Increase

Fundamentals And Technical Analysis

Pinnacle Financial Partners, Inc. is currently trading at $40.18/share, up 1.6% for the day. The company is trading at approximately 61.8% of its 52-week high of $65/share. The company’s stock price is down −0.8% since the last earnings report and down −1.2% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 51.32 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:PNFP Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.12 and a forward P/E multiple of 11.49.

Pinnacle Financial Partners, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.67. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $40.18
P/E Ratio 10.1x
P/E Ratio (Fwd) 11.5x
PEG Ratio −0.5
Total Debt / Total Capital 47.7%
Levered Free Cash Flow $403.3 million
Price To Sales 2.7x

Finbox

Pinnacle Financial Partners, Inc. is a mid-cap stock with a market capitalization of $2.985 billion. The company operates in the Financials sector and the Banks industry.

Pinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services in the United States. The company accepts various deposits, including savings, checking, noninterest-bearing checking, interest-bearing checking, money market, and certificate of deposit accounts. Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit. The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody. In addition, it provides insurance products primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, interest rate derivatives, and other middle-market advisory services. Further, the company offers treasury management, telephone and online banking, mobile banking, debit and credit cards, direct and remote deposit, automated teller machine, and cash management services. It serves individuals, small-to medium-sized businesses, and professional entities. As of December 31, 2019, the company operated 111 offices, including 47 in Tennessee, 36 in North Carolina, 20 in South Carolina, and eight in Virginia. Pinnacle Financial Partners, Inc. was founded in 2000 and is headquartered in Nashville, Tennessee.

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