Comerica Earnings: Here is What You Need to Know

Comerica Bank Earnings ReportFrom Dallas, Comerica Incorporated (CMA) reported early Tuesday  its quarterly earnings of $144 million and an earnings per share of 73 cents, which shattered estimated EPS of 64 cents and was a 7 cent increase over the first quarter of 2012. In response, the stock lurched early Tuesday north of $31.60 per share before settling back down to be up about two-thirds of a point at $31 per share.

Cmpared to the second quarter of 2011, CMA posted a huge growth spurt, with net quarterly income of $144 million being 50 percent higher than in the same period of 2011 ($96 million) and the EPS of 73 cents being 38 percent better year-over-year. Commercial loans increased by 5 percent ($1.2 billion) over the previous quarter and has grown for eight consecutive quarters – resulting in a 20-percent increase year-over-year. Overall loans were up 2 percent ($959 million) over the previous quarter.

CEO Ralph W. Babb Jr. said, “Our second quarter results reflect our focus on the bottom line in this slow growing national economy. Loans continued to grow … (d)eposits continued to grow, credit quality remained solid, and we maintained our tight control of expenses. Our capital position remains a source of strength to support our future growth. We repurchased 2.9 million shares under our share repurchase program in the second quarter of 2012. In April, our Board of Directors increased the quarterly cash dividend 50 percent, to 15 cents per share. The combined share buyback and dividend returned 81 percent of second quarter net income to shareholders. Our consistent, conservative, relationship-focused approach to banking is making a positive difference for us and our customers.”

This news can be seen as a positive step to hedge funds like John Murphy’s Alydar Capital and Glenn Russell Dubin’s Highbridge Capital Management, both of which were new investors in CMA stock during the first quarter of 2012 while other funds were jettisoning some of their positions. Alydar had invested nearly $74 million in Comerica during Q1, while Highbridge jumped in with a nearly $24 million investment. Alydar was the top hedge-fund investor in Comerica in March, while Highbridge was No. 4. The funds between them, John Brennan’s Sirios Capital Management and Cliff Asness’s AQR Capital Management, had sold offr large portions of their stakes – Sirios shed 34 percent of its stake in Q1 while AQR dumped 43 percent.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!