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

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!