Comerica Misses on Earnings

Comerica (NYS: CMA) reported earnings for its third quarter this morning, and a slight miss on EPS expectations has prompted a small sell off early this morning. With analysts expecting $0.65 in earnings per share, the bank checked in at $0.61 despite record deposits. Nevertheless, lending remains strong, and the bank remains committed to returning income to shareholders despite a slight decrease in net interest income during the quarter.

What I was watching
In addition to the revenue and EPS numbers referenced above, I was also watching for a continued increase in total lending, as well as improvement in nonperforming loans. Comerica has been leading the pack among regionals in increasing lending, and the trend continues, with total loans up slightly, but driven primarily by a $717 million increase in commercial loans during the quarter.

What to expect going forward
Comerica is two quarters into a recently raised dividend, so it might not quite be time to for another dividend raise. However, between share repurchases and its increased dividend, Comerica returned 101% of third-quarter income to shareholders. With Comerica trading near its 2008 financial crisis level prices, it might be an option for investors looking for a choice among regional banks.


All this talk about regional banks might make you forget about one of the best opportunities among the "too big to fail banks." To learn more about the most-talked-about bank out there, check out our in-depth company report on Bank of America. The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just click here to get access.

The article Comerica Misses on Earnings originally appeared on Fool.com.

Robert Eberhard has no positions in the stocks mentioned above. Follow him on Twitter, or click here to see his holdings and a short bio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum