Have you been eager to see how Comerica Incorporated (CMA) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Dallas-based money center bank’s earnings release this morning:
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An Earnings Beat
Comerica came out with earnings per share of 82 cents, beating the Zacks Consensus Estimate of 77 cents.
Strong top line and lower expenses were primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Comerica depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.
However, Comerica has an impressive earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.06% in the trailing four quarters.
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Revenue Came In Higher Than Expected Â
Comerica posted revenues of $640 million, which beat the Zacks Consensus Estimate of $634 million. Moreover, it compared favorably with the year-ago number of $618 million.
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Outlook for 2015:
- Comerica expects net interest income as well as non-interest income to be relatively stable.
- Non-interest expenses to rise.
- Provision for credit losses are expected to increase.
- Stable loan growth with continued focus on pricing and structure discipline.
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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.
