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Comerica (CMA) Q2 Earnings: Is a Likely Beat in Store?
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Comerica Incorporated (CMA - Free Report) is scheduled to report its second-quarter 2016 results, before the opening bell on Tuesday, Jul 19.
Why a Likely Positive Surprise?
Our proven model shows that Comerica has the right combination of two key components to beat earnings.
Positive Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.47%. This is a very significant and leading indicator of a likely positive earnings surprise for the company.
Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Comerica’s Zacks Rank #3 and ESP of +1.47% makes us confident of an earnings beat on Jul 19.
Comerica has a decent earnings surprise history as depicted in the chart below:
We expect Comerica’s non-interest income to primarily drive revenues in the second quarter. Fee-based income will likely grow on the back of higher card fees and fiduciary income. Further, increased merger and acquisition activity during the quarter is expected to boost revenues in the company’s Wealth Management segment.
On the other hand, net interest income is projected to show modest growth, propelled by Comerica’s consistently improving loan portfolio. Moreover, pressure on net interest margin is likely to continue in the quarter, partly allayed by loan growth across all categories, excluding energy.
On the expense front, increases in regulatory and compliance costs due to stricter regulations, is expected to hurt the bottom-line performance.
Comerica’s activities during the quarter were not enough to win the analysts’ confidence, as evident from stable Zacks Consensus Estimate at 68 cents for the current quarter, during the past 7 days.
Stocks That Warrant a Look
Here are some other stocks you may want to consider, as according to our proven model they have the right combination of elements to post an earnings beat this quarter.
Interactive Brokers Group, Inc. (IBKR - Free Report) has an earnings ESP of +2.86% and carries a Zacks Rank #3. It is scheduled to report its second-quarter results on Jul 19.
The earnings ESP for Regions Financial Corp. (RF - Free Report) is +5.00% and it carries a Zacks Rank #3. The company is expected to release its second-quarter results on Jul 19.
Federated Investors, Inc. has an earnings ESP of +2.13% and carries a Zacks Rank #3. It is slated to report its second-quarter results on Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Comerica (CMA) Q2 Earnings: Is a Likely Beat in Store?
Comerica Incorporated (CMA - Free Report) is scheduled to report its second-quarter 2016 results, before the opening bell on Tuesday, Jul 19.
Why a Likely Positive Surprise?
Our proven model shows that Comerica has the right combination of two key components to beat earnings.
Positive Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.47%. This is a very significant and leading indicator of a likely positive earnings surprise for the company.
Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Comerica’s Zacks Rank #3 and ESP of +1.47% makes us confident of an earnings beat on Jul 19.
Comerica has a decent earnings surprise history as depicted in the chart below:
COMERICA INC Price and EPS Surprise
COMERICA INC Price and EPS Surprise | COMERICA INC Quote
Factors to Influence Q2 Results
We expect Comerica’s non-interest income to primarily drive revenues in the second quarter. Fee-based income will likely grow on the back of higher card fees and fiduciary income. Further, increased merger and acquisition activity during the quarter is expected to boost revenues in the company’s Wealth Management segment.
On the other hand, net interest income is projected to show modest growth, propelled by Comerica’s consistently improving loan portfolio. Moreover, pressure on net interest margin is likely to continue in the quarter, partly allayed by loan growth across all categories, excluding energy.
On the expense front, increases in regulatory and compliance costs due to stricter regulations, is expected to hurt the bottom-line performance.
Comerica’s activities during the quarter were not enough to win the analysts’ confidence, as evident from stable Zacks Consensus Estimate at 68 cents for the current quarter, during the past 7 days.
Stocks That Warrant a Look
Here are some other stocks you may want to consider, as according to our proven model they have the right combination of elements to post an earnings beat this quarter.
Interactive Brokers Group, Inc. (IBKR - Free Report) has an earnings ESP of +2.86% and carries a Zacks Rank #3. It is scheduled to report its second-quarter results on Jul 19.
The earnings ESP for Regions Financial Corp. (RF - Free Report) is +5.00% and it carries a Zacks Rank #3. The company is expected to release its second-quarter results on Jul 19.
Federated Investors, Inc. has an earnings ESP of +2.13% and carries a Zacks Rank #3. It is slated to report its second-quarter results on Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>