Have you been eager to see how Comerica Incorporated (CMA - Analyst Report) performed in Q2 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:
An Earnings Miss
Comerica came out with earnings per share of 73 cents, missing the Zacks Consensus Estimate of 74 cents. Higher adjusted expenses and elevated provisions were primarily responsible for this earnings miss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Comerica remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last 7 days.
Also, Comerica has a decent earnings surprise history. Before posting earnings miss in Q2, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.67% in the trailing four quarters.
Revenue Came In Higher Than Expected
Comerica posted revenues of $682 million, which marginally beat the Zacks Consensus Estimate of $676 million. Moreover, it compared favorably with the year-ago number of $636 million.
Key Stats to Note:
§ Net Income: $135 million in Q2, down 10.6% year over year.
§ Average total deposits: $57.4 billion in Q2, up 7.5% year over year.
§ Commercial loans (average balance at the end of Q2): $31.8 billion, up 6.4% year over year.
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 unfavorable, it all depends on what sense the just-released report makes to the analysts.
