Can Q4 Earnings Propel Comerica (CMA) Stock To New Highs?
Zacks Investment Research | Jan 11, 2018 08:55PM ET
Comerica Incorporated (NYSE:CMA) is scheduled to report fourth quarter and 2017 results before the opening bell on Jan 16. Its revenues and earnings are expected to grow year over year.
The improving economic backdrop — stronger GDP growth, rise in consumer spending and increasing business spending — is likely to support Comerica’s results. The Zacks Consensus Estimate for revenues of $812.8 million for the fourth quarter reflects year-over-year growth of 12.6%.
Further, management’s positive outlook for 2018 on the back of lower taxes and expectations of loan growth might lead the stock to new highs.
Before we discuss why an earnings beat might also be in store, let’s take a look at how the company performed in the prior quarter.
Comerica’s third-quarter 2017 results improved primarily due to a fall in expenses and higher revenues. It had surpassed the Zacks Consensus Estimate. However, the positives were partially offset by lower loan balance and provision for loan losses.
Notably, the company boasts an impressive earnings surprise history. It surpassed earnings estimates in each of the trailing four quarters, with an average positive surprise of 10.13%.
These positive earnings surprises along with fundamental strength helped Comerica’s shares gain 23.2% over the past six months, outperforming the Zacks Investment Research
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