S&P 500 (NYSE:SPY) component Comerica Inc. (NYSE:CMA) reported net income above Wall Street’s expectations for the second quarter. Comerica is a financial holding company that operates in business, retail, and wealth management.
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Comerica Inc. Earnings Cheat Sheet
Results: Net income for Comerica Inc. rose to $144 million (73 cents per share) vs. $96 million (53 cents per share) in the same quarter a year earlier. This marks a rise of 50% from the year-earlier quarter.
Revenue: Rose 8.9% to $646 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Comerica Inc. beat the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $638.5 million.
Quoting Management: “Our second quarter results reflect our focus on the bottom line in this slow growing national economy,” said Ralph W. Babb Jr., chairman and chief executive officer. “Loans continued to grow, with average loans up $959 million, or two percent, compared to the first quarter, primarily reflecting an increase of $1.2 billion, or five percent, in commercial loans. This was the eighth consecutive quarter of average commercial loan growth, resulting in a 20 percent year-over-year increase, including our acquisition of Sterling Bancshares last July. The increase in average commercial loans in the second quarter was broad-based, primarily driven by increases in National Dealer Services, Global Corporate Banking, Middle Market Banking and Energy. As expected, this was partially offset by the continued decline in commercial real estate loans.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 11 cents in the first quarter, by 14 cents in the fourth quarter of the last fiscal year, and by 10 cents in the third quarter of the last fiscal year.
Net income has increased 36.7% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 66.1% from the year-earlier quarter.
Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the third quarter is 62 cents per share, up from 58 cents ninety days ago. The average estimate for the fiscal year is $2.52 per share, a rise from $2.31 ninety days ago.
Competitors to Watch: U.S. Bancorp, University Bancorp, Inc., Dearborn Bancorp, Inc., Wells Fargo & Company, Bank of America Corp., Regions Financial Corp., JPMorgan Chase & Co., Citizens Republic Bancorp, Inc., and Old National Bancorp.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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