/Comerica%2C%20Inc_%20park-by%20Ayman%20Haykal%20via%20iStock.jpg)
Comerica Incorporated (CMA), with a market cap of $6.78 billion, is a prominent financial services company specializing in retail and commercial banking. Headquartered in Dallas, Texas, Comerica operates in multiple states across the U.S., including Texas, Michigan, and California, providing a wide range of financial products and services to individuals, businesses, and institutions. The company is scheduled to report its fiscal second-quarter earnings for 2024 before the market opens on Friday, Jul. 19.
Ahead of the event, analysts expect CMA to report a profit of $1.18 per share, down 41.3% from $2.01 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Comerica's adjusted earnings of $1.29 per share for the last reported quarter beat the consensus estimate by 14.2%. Higher net interest income contributed to Comerica's Q1 performance, but overall performance deteriorated year over year due to reduced revenues and increased expenses.
For fiscal 2024, analysts expect CMA to report EPS of $5.07, down 34.6% from $7.75 in fiscal 2023. Fiscal 2025 EPS is expected to grow 16% year over year to $5.88.
CMA stock is down 8.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 15.5% returns. The stock has also lagged behind the Financial Select Sector SPDR Fund (XLF), which had 10.9% returns over the same time frame.
Comerica shares fell over 1% after it was announced that the stock would leave the S&P 500 and join the S&P Smallcap 600 Index before trading opens on June 24. CMA reported Q1 results on Apr. 18. The shares gained 1.7% after the earnings release.
However, the consensus opinion on CMA stock is cautious, with an overall “Hold” rating. Out of 24 analysts covering the stock, six advise 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 the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
