Pinnacle Financial Partners Inc.
(
PNFP
) has enjoyed upward earnings estimate revisions for 2012 and 2013
over the last 60 days, following a strong third-quarter report in
mid October that included its third straight positive earnings
surprise. This regional bank hit its 52 week high on October 18 and
achieved a Zacks #1 Rank (Strong Buy) status on October 20. With a
year's return of approximately 23.4% and a long-term expected
earnings growth rate of 12.5%, the stock is a solid growth pick.
Solid Q3 Results
On October 16, Pinnacle Financial reported third quarter earnings
of 33 cents per share, outpacing the Zacks Consensus Estimate by
10.0%. The better-than-expected results were predominantly driven
by top line growth, lower operating costs and a drop in provisions
for loan losses. In the year-ago quarter, PNFP reported 72 cents.
Net interest income climbed 6.7% year over year to $40.9 million,
while non-interest income increased 3.5% to $10.4 million.
Moreover, the net interest margin expanded 18 basis points to
3.78%, and non-interest expenses declined 5.9% to $33.6 million.
Credit metrics continued to improve at Pinnacle Financial.
Provisions for loan losses were $1.4 million, plummeting 61.1% from
the year-ago quarter with net charge-offs exhibiting a downward
trend as well. Net charge-offs were $1.9 million, declining 66.2%
from $5.7 million in the prior-year quarter.
Earnings Estimates Advancing
Over the past 60 days, the Zacks Consensus Estimate for 2012
advanced 4.8% to $1.10 per share with 7 of 8 estimates moving
higher. For 2013, the Zacks Consensus Estimate increased 5.6% to
$1.32 over the same time frame, as 8 of 9 estimates moved upward.
The Zacks Consensus Estimate for 2012 reflects year-over-year
growth of about 71.1%, while the expected growth rate for 2013 is
20.7%.
Reasonable Valuation
Shares of Pinnacle Financial currently trade at 17.4x 12-month
forward earnings, almost in line with the peer group average. Its
price to book ratio of 0.98 is at a 13% discount to the industry
median of 1.13. The company has a trailing 12-month ROE of 5.8%,
compared with the peer group average of 7.3%.
The stock has been continuously outperforming its 200 days moving
average over the past year, exhibiting steadfast growth. Moreover,
the stock is trading almost ahead of the S&P 500 over the same
time frame.
Headquartered in Nashville, Tennessee, Pinnacle Financial is a bank
holding company and conducts its primary operations through its
wholly-owned subsidiary, Pinnacle National Bank. Incorporated in
2000, the company conducts its businesses through 29 offices in
eight Middle Tennessee counties and 3 offices in Knoxville. The
company has a market cap of about $659.9 million. Capital City Bank
Group Inc. (
CCBG
) and Farmers Capital Bank Corporation (
FFKT
) are the other Zacks #1 Rank (Strong Buy) stocks in the same
industry.
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PINNACLE FIN PT (PNFP): Free Stock Analysis
Report
PINNACLE FIN PT (PNFP): Free Stock Analysis
Report
PINNACLE FIN PT (PNFP): Free Stock Analysis
Report
PINNACLE FIN PT (PNFP): Free Stock Analysis
Report
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