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Comerica (CMA) Miss on Q1 Earnings on High Expenses

Have you been eager to see how Comerica Incorporated CMA performed in Q1 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 34 cents, missing the Zacks Consensus Estimate of 42 cents.  Lower non-interest income and higher non-interest expenses were primarily responsible for this earnings miss.

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 moved down 6.7% over the last 7 days.

However, Comerica has a decent earnings surprise history. Before posting earnings miss in Q1, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.55% in the trailing four quarters.

Revenue Came In Lower Than Expected   
 
Comerica posted revenues of $693 million, which missed the Zacks Consensus Estimate of $708 million. However, it compared favorably with the year-ago number of $665 million.

Key Stats to Note:

  • Average total deposits: $56.7 billion in Q1, slightly down on a year-over-year basis.
  • Average total loans: $48.4 billion in Q1, slightly up on a year-over-year basis.
  • Provisions escalated on rise in reserves in the Energy business line.
  • Comerica returned $79 million to shareholders through shares repurchase and dividends

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong Sell) 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.

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

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COMERICA INC (CMA): Free Stock Analysis Report
 
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