Earnings Preview: Comerica

| About: Comerica Inc. (CMA)
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Comerica (NYSE:CMA) is expected to report Q4 earnings on Thursday, January 22 before the market open with a conference call scheduled for 8:00 am.


Analysts are looking for EPS of 24c on revenue of $668.20M. The consensus range for EPS is (43c)-45c, while the consensus range for revenue is $640.90M-$691.10M, according to First Call.

Analyst Views

Bloomberg recently named Comerica as one of three regional banks that could face a large amount of losses from its loans in the commercial real estate sector. The percentage of commercial real estate loans that are overdue have reached a 15-year high, Bloomberg notes.

Meanwhile, Ladenburg's Dick Bove last month reduced his target on Comerica to $21 from $30. Bove believes the bank is operating in bad markets, since Michigan has been hit hard by the automotive industry's struggles while California has been badly hurt by the housing crisis. On the other hand, Bove, who maintained a Market Perform rating on Comerica's shares, wrote that the bank is safe, well-positioned, and well-capitalized.

Goldman Sachs upgraded Comerica to Neutral from Sell last month. Goldman cited valuation for the upgrade.