What to expect from the Comerica report

Comerica Incorporated (CMA), with a market capitalization of $6.78 billion, is a well-known financial services company specializing in retail and commercial banking. Headquartered in Dallas, Texas, Comerica operates in multiple states in the United States, including Texas, Michigan, and California, offering a wide range of financial products and services to individuals, businesses, and institutions. The company is scheduled to report its fiscal second quarter 2024 earnings before the market opens on Friday, July 19.

Ahead of the event, analysts expect CMA to report earnings of $1.18 per share, down 41.3% from $2.01 per share in the year-ago quarter. The company has consistently topped Wall Street earnings per share estimates in its last four quarterly reports.

Comerica’s adjusted earnings of $1.29 per share for the most recently reported quarter beat consensus estimates by 14.2%. Higher net interest income helped Comerica’s results in the first quarter, but overall results declined year-over-year due to lower revenues and higher costs.

Analysts forecast that CMA will report earnings per share of $5.07 in fiscal 2024, down 34.6% from $7.75 in fiscal 2023. Earnings per share in fiscal 2025 are expected to increase 16% year over year to $5.88.

CMA shares are down 8.4% YTD, which is worse than the broader S&P 500 Index ($SPX)’s 15.5% return. The stock also lags the Financial Select Sector SPDR Fund (XLF), which has returned 10.9% over the same period.

Comerica shares fell more than 1% after announcing the stock would leave the S&P 500 and join the S&P Smallcap 600 before trading begins on June 24. CMA reported its first-quarter results on April 18. Shares rose 1.7% after the earnings report.

However, the consensus view on CMA stock is cautious, with an overall rating of “Hold.” Of the 24 analysts covering the stock, six recommend a “Strong Buy” rating, one recommends a “Moderate Buy,” 15 suggest a “Hold,” and two recommend a “Strong Sell.”

The average analyst price target for CMA is $55.90, indicating a potential upside of 9.4% from current levels.

On the date of publication, Rashmi Kumari did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.