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Is Earnings Beat Likely For Comerica (CMA) Stock In Q1?
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We expect Comerica Incorporated (CMA - Free Report) to beat earnings expectations when it reports first-quarter 2017 results, before the opening bell on Apr 18.
Why a Likely Positive Surprise?
Our proven model shows that Comerica has the right combination of two key ingredients – positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings beat.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.98%. This is a major indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Comerica carries a Zacks Rank #3.
Further, the company boasts a decent earnings surprise history. It topped earnings in three of the trailing four quarters, with an average positive surprise of 3.7%.
Shares of Comerica gained 38.0% over the past six months, outperforming the Zacks categorized Banks – Major Regional industry’s 26.6% growth.
Factors to Influence Q1 Results
Fee Income Strength: Non-interest income might get a lift owing to Comerica’s several new initiatives, including enhanced product offerings. Further, the to-be-reported quarter might exhibit higher card fees and fiduciary income, as the company remains focused on cross-selling opportunities.
Sluggish Loan Growth: Owing to the uncertainties over Trump’s policy goals, banks faced sluggish loan growth in the last few months. We can expect this loan trend to partially offset the increase in revenues derived from the rate hikes.
Easing Pressure on Net Interest Margin: While loan growth remained tepid during the quarter, the two rate hikes since Dec 2016 might have eased some pressure on Comerica’s net interest margin (NIM).
Effective Cost Saving Initiatives: Expenses might trend downward in the upcoming release due to the company’s GEAR Up expense savings initiatives. However, it can be partly offset by expenses related to the restructuring projects undertaken by Comerica.
Energy Portfolio Exposures: The performance of Comerica’s energy portfolio, representing less than 5% of total loans, improved during fourth-quarter 2016. Management remains cautious and believes that the company is adequately prepared with reserve allocation of over 7% of energy loans as of Dec 31, 2016. We believe, given the rebound in oil prices, the allowances tied with energy portfolio should not be significant. Though management considers the company’s exposures manageable, risk grade migration within the energy portfolio may lead to higher provisions.
Activities of Comerica during the quarter were adequate to win analysts’ confidence. Over the last seven days, the Zacks Consensus Estimate for the quarter’s earnings increased to $1.01.
Other Stocks that Warrant a Look
Here are some other stocks you may want to consider, as they have the right combination of elements to post an earnings beat this quarter.
The Earnings ESP for Lazard Ltd (LAZ - Free Report) is +11.27% and it carries a Zacks Rank #2 (Buy). The company is expected to release first-quarter results on Apr 20.
BB&T Corporation has an Earnings ESP of +4.29% and a Zacks Rank #3. It is scheduled to report first-quarter results on Apr 20.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Is Earnings Beat Likely For Comerica (CMA) Stock In Q1?
We expect Comerica Incorporated (CMA - Free Report) to beat earnings expectations when it reports first-quarter 2017 results, before the opening bell on Apr 18.
Why a Likely Positive Surprise?
Our proven model shows that Comerica has the right combination of two key ingredients – positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings beat.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.98%. This is a major indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Comerica carries a Zacks Rank #3.
Further, the company boasts a decent earnings surprise history. It topped earnings in three of the trailing four quarters, with an average positive surprise of 3.7%.
Comerica Incorporated Price and EPS Surprise
Comerica Incorporated Price and EPS Surprise | Comerica Incorporated Quote
Shares of Comerica gained 38.0% over the past six months, outperforming the Zacks categorized Banks – Major Regional industry’s 26.6% growth.
Factors to Influence Q1 Results
Fee Income Strength: Non-interest income might get a lift owing to Comerica’s several new initiatives, including enhanced product offerings. Further, the to-be-reported quarter might exhibit higher card fees and fiduciary income, as the company remains focused on cross-selling opportunities.
Sluggish Loan Growth: Owing to the uncertainties over Trump’s policy goals, banks faced sluggish loan growth in the last few months. We can expect this loan trend to partially offset the increase in revenues derived from the rate hikes.
Easing Pressure on Net Interest Margin: While loan growth remained tepid during the quarter, the two rate hikes since Dec 2016 might have eased some pressure on Comerica’s net interest margin (NIM).
Effective Cost Saving Initiatives: Expenses might trend downward in the upcoming release due to the company’s GEAR Up expense savings initiatives. However, it can be partly offset by expenses related to the restructuring projects undertaken by Comerica.
Energy Portfolio Exposures: The performance of Comerica’s energy portfolio, representing less than 5% of total loans, improved during fourth-quarter 2016. Management remains cautious and believes that the company is adequately prepared with reserve allocation of over 7% of energy loans as of Dec 31, 2016. We believe, given the rebound in oil prices, the allowances tied with energy portfolio should not be significant. Though management considers the company’s exposures manageable, risk grade migration within the energy portfolio may lead to higher provisions.
Activities of Comerica during the quarter were adequate to win analysts’ confidence. Over the last seven days, the Zacks Consensus Estimate for the quarter’s earnings increased to $1.01.
Other Stocks that Warrant a Look
Here are some other stocks you may want to consider, as they have the right combination of elements to post an earnings beat this quarter.
BancorpSouth, Inc. is slated to report first-quarter results on Apr 19. It has an Earnings ESP of +2.63% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Earnings ESP for Lazard Ltd (LAZ - Free Report) is +11.27% and it carries a Zacks Rank #2 (Buy). The company is expected to release first-quarter results on Apr 20.
BB&T Corporation has an Earnings ESP of +4.29% and a Zacks Rank #3. It is scheduled to report first-quarter results on Apr 20.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>