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Comerica (CMA) Beat on Q3 Earnings on High Revenues

Have you been eager to see how Comerica IncorporatedCMA performed in Q3 in comparison with the market expectations? Let's quickly scan through the key facts from this TX-based money center bank's earnings release this morning:

An Earnings Beat

Comerica came out with adjusted earnings per share of $1.27, beating the Zacks Consensus Estimate of $1.20. Higher revenues and lower expenses were primarily responsible for this earnings beat. Also, ease in margin pressure supported the results.

How Was the Estimate Revision Trend?

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

However, Comerica has an impressive earnings surprise history. Before posting earnings beat in Q3, the company delivered positive surprises in all the trailing four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 12.3% in the trailing four quarters.

Comerica Incorporated Price and EPS Surprise

Comerica Incorporated Price and EPS Surprise | Comerica Incorporated Quote

Revenue Came In Higher Than Expected

Comerica posted revenues of $821 million, which surpassed the Zacks Consensus Estimate of $812.8 million. Also, it compared favorably with the year-ago number of $722 million.

Key Stats to Note:

  • Net Interest Margin: 3.29% up 63 basis points year over year
  • Nonperforming assets: $458 million, down 30.6% on a year over year basis
  • Non-interest expenses: $463 million, down 6.1% on a year over year basis

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!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

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