Pinnacle Financial Q2 revenue beats estimates

Overview

• Pinnacle Financial Q2 revenue beats analyst expectations, per LSEG data

• Net income per diluted share rises 212.5% yr/yr to $2.00

• Loan growth at 10.7% linked-quarter annualized, net interest margin up to 3.23%

Outlook

• Company expects continued margin expansion into the third quarter of 2025

• Pinnacle Financial optimistic about performance for remainder of 2025

• Pinnacle Financial plans to rely on recent hires for loan growth

Result Drivers

• LOAN GROWTH - Pinnacle's commercial and industrial loan segment showed strong growth, increasing 21.9% linked-quarter annualized, according to CFO Harold R. Carpenter.

• NONINTEREST INCOME - Increase in noninterest income driven by wealth management and investment in Bankers Healthcare Group, contributing to overall revenue growth.

• NET INTEREST MARGIN - Net interest margin increased to 3.23%, aiding in the earnings growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Pinnacle Financial Partners Inc is $124.50, about 4.4% above its July 14 closing price of $119.04

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwm28x9a