Comerica's 2Q Results: Postgame Scorecard
Comerica (NYSE:CMA) saw its profit climb in the second quarter, exceeding Street expectations.
Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 73 cents a share versus the 61 cents a share estimate and revenues of $646 million versus the $638.5 million estimate. The company's reported EPS came in above the high estimate of 27 analysts of a profit of 67 cents.
The company's net income for the quarter rose 50% to $144 million. Revenue climbed 8.9% from $633 million in the same period last year.
Company Fundamental Trends
History Against Expectations The company has now topped analyst estimates for at least the last four quarters. It beat by 11 cents in the first quarter, 14 cents in the fourth quarter of the last fiscal year and 10 cents in the third quarter of the last fiscal year.
Official Comment: "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.
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.