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Comerica (CMA) Q3 Earnings Improve Y/Y, Expenses Rise

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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:

An Earnings Beat

Comerica came out with adjusted earnings per share of $1.86, up from the prior-year quarter adjusted figure of $1.27 on high interest income and lower provisions. The Zacks Consensus Estimate stands at $1.76.

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 seven days.

However, Comerica has an impressive earnings surprise history. Before posting earnings beat in Q3, the company delivered positive surprises in all the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 7.4% in the trailing four quarters.

Comerica Incorporated Price and EPS Surprise

Revenue Came In More Than Expected   
 
Comerica posted revenues of $853 million, which came in line with the Zacks Consensus Estimate. Also, it compared favorably with the year-ago number of $791 million.
    
Key Stats to Note:

  • Net interest margin expanded 32 basis points on a year-over-year basis.
  • Average total loans: $48.6 billion in Q3, down slightly on a year-over-year basis.
  • Nil provisions for credit losses were recorded during the quarter.
  • Comerica returned $600 million to shareholders through shares repurchase and dividends


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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