CMA Earnings Prediction
The chart below shows how CMA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMA sees a -1.40% change in stock price 10 days leading up to the earnings, and a +0.56% change 10 days following the report. On the earnings day itself, the stock moves by -2.86%. This data can give you a slight idea of what to expect for the next quarter's release.
CMA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
731.00M
-8.85%
-0.81%
Gross Margin
--
--
--
Operating Margin
32.15%
-21.14%
-11.92%
Net Margin
25.17%
-19.58%
-9.95%
EPS
1.32
-27.87%
-11.41%
No Data Available
CMA Earnings Analysis
Comerica Inc Corporation (CMA.N) Earnings Conference Call
Positive
Earnings Exceed Expectations: 3rd quarter earnings of $184 million or $1.33 per share, exceeding expectations across most line items.
Deposit Growth Increase: Average deposits increased 1.3% with growth across most business lines, leading to a total period end deposit growth of over $600 million.
Net Interest Income Growth: Net interest income increased by $1 million to $534 million, with a projected growth of 6% in Q4 compared to Q3.
CET1 Ratio Improvement: Estimated CET1 ratio improved to 11.97%, well above the 10% strategic target, with plans to repurchase $100 million of common stock starting in Q4.
Tangible Book Value Increase: Tangible book value grew by 23% due to a meaningful improvement in AOCI, reflecting strong capital management.
Negative
Weak Loan Demand Outlook: Loan demand remains weak, with average loans projected to decline by 5% in 2024 compared to 2023, primarily due to high inflation and elevated interest rates.
Non-Interest Income Decline: Non-interest income decreased by $14 million in Q3, primarily driven by a $10 million decline in risk management hedging income and a $5 million loss related to Visa derivatives.
Rising Operational Costs: Total expenses increased by $7 million from the previous quarter, with salaries and benefits rising by $12 million, indicating rising operational costs despite efforts to control expenses.
Net Interest Income Decline: Projected full-year net interest income is expected to decline by 13% to 14% compared to 2023, reflecting ongoing pressures from lower loan growth and competitive deposit pricing.
Projected Deposit Decline: Average deposits are projected to decrease by 3% to 4% in 2024, driven by a $1 billion decline in brokered time deposits, indicating challenges in maintaining deposit levels.
CMA FAQs
How does CMA typically perform around its earnings report dates?
Is Earnings call transcript: Comerica Q3 2024 misses EPS forecast, stock dips positive or negative?
How can historical earnings data help predict future stock performance?
CMA Earning Call Sentiment
Earnings call transcript: Comerica Q3 2024 misses EPS forecast, stock dips
CMA.N
-2.37%Positive
The earnings exceeded expectations, and there is a positive outlook on net interest income growth. However, the projected decline in loans and deposits, along with flat or declining non-interest income, balances out the positives. The Q&A section revealed management's cautious stance on economic uncertainties and regulatory changes, which could impact future performance. Additionally, the market's reaction to the share repurchase plan may be muted due to the mixed financial outlook. Overall, the sentiment is neutral due to these balanced factors.
