Pinnacle Financial Beats Quarterly Earnings Expectations but Falls Short on Revenue

Pinnacle Financial (PNFP) surpassed market expectations with its second-quarter results for June 2024. The regional bank operator posted earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.60 per share. However, these earnings were lower than the $1.79 per share reported for the same quarter last year. The company also saw a revenue of $366.55 million, missing the Zacks Consensus Estimate by 14.04%. This is a contrast from the year-ago revenues of $489.23 million.

Despite Pinnacle Financial’s underperformance in comparison to the S&P 500 this year, investors are keeping an eye on the stock’s future potential. The upcoming performance of the stock may be influenced by the company’s earnings outlook and any changes in earnings expectations. Currently holding a Zacks Rank #3 (Hold), Pinnacle Financial is expected to align with the market. Analysts will be monitoring any revisions in estimates for the upcoming quarters and fiscal year, with consensus estimates standing at $1.76 per share for the next quarter and $6.75 per share for the current fiscal year.

Investors also have their sights on City Holding Company (CHCO), another player in the same industry, which is yet to report its results for the quarter ended June 2024. City Holding is projected to report quarterly earnings of $1.88 per share, showcasing a year-over-year decline. The performance of both companies will be crucial indicators for the future trajectory of the Southeast banking industry, which currently ranks in the bottom 27% among the Zacks industries.