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Comerica (CMA) Beat on Q4 Earnings on High Revenues

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Have you been eager to see how Comerica Incorporated (CMA - Free Report) performed in Q4 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 Beat

Comerica came out with adjusted earnings per share of 99 cents, beating the Zacks Consensus Estimate of 95 cents.  Higher revenues and lower non-interest expenses were primarily responsible for this earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Comerica depicted pessimism prior to the earnings release. The Zacks Consensus Estimate decreased 1% over the last 7 days.

However, Comerica has a decent earnings surprise history. Before posting 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 3.4% in the trailing four quarters.

Revenue Came In Lower Than Expected   
 
Comerica posted revenues of $722 million, which missed the Zacks Consensus Estimate of $729 million. However, it compared favorably with the year-ago number of $699 million.

Key Stats to Note:

  • Average total deposits: $59.6 billion in Q4, slightly down on a year-over-year basis.
  • Average total loans: $48.9 billion in Q4, slightly up on a year-over-year basis.
  • Provisions decreased on fall in reserves in the Energy business line.
  • Comerica returned $139 million to shareholders through shares repurchase and dividends

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) 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 stocks here.

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

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