Back to top

Tale of the Tape

Zacks Equity Research

Comerica (CMA) Q3 Earnings Improves as Revenues Rise
October 18, 2016

CMA

Trades from $3

Have you been eager to see how Comerica Incorporated (CMA - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Texas-based money center bank’s earnings release this morning:

Earnings Improve Y/Y

Comerica came out with earnings per share of 84 cents, up 13.5% year over year. Notably, the reported quarter includes certain restructuring charges. The Zacks Consensus Estimate was 79 cents. Results were aided by higher revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Comerica has depicted a neutral stand prior to the earnings release. The Zacks Consensus Estimate remained unchanged over the last 7 days.

Nonetheless, Comerica has a positive earnings surprise history. Before posting earnings beat in Q3, the company delivered positive surprises in three of the prior four quarters.
 

COMERICA INC Price and EPS Surprise

 

COMERICA INC Price and EPS Surprise | COMERICA INC Quote

 

Overall, the company has a positive earnings surprise of 1.09% in the trailing four quarters.

Revenue Came In Lower Than Expected

Comerica posted revenues of $722 million, which missed the Zacks Consensus Estimate of $723 million. However, it compared favorably with the year-ago number of $682 million.

Key Stats to Note:

Net interest margin (NIM) improved by 12 basis points (bps) year over year to 2.66%.

Average total deposits: $58.1 billion in Q3, down 2% on a year-over-year basis.

Average total loans: $49.2 billion in Q3, slightly up on a year-over-year basis.

Comerica returned $137 million to shareholders through shares repurchase and dividends. Dividend increased 4.5% to 23 cents per share during the third quarter.

Provision for credit losses decreased by 38% year over year to $16 million.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Comerica. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here).

Check back later for our full write up on this Comerica earnings report!

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

COMERICA INC (CMA) - free report >>