NYSE$CMA

Comerica Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Net income of $328 million, or $2.32 per share, was reported, with revenue increasing 5 percent.

Comerica reported a strong second quarter with net income of $328 million, or $2.32 per share. Revenue increased by 5 percent, driven by robust growth in fee-generating activity. Credit quality remained strong, leading to a reserve release. The company repurchased 5.9 million shares and returned $542 million to shareholders through dividends and repurchases.

  • Strong deposit growth, robust fee income, and excellent credit quality were observed.
  • Revenue increased, and expense control was maintained while supporting revenue-generating activities.
  • Solid loan growth occurred in several business lines, particularly General Middle Market.
  • Share repurchase program reduced share count by over 4 percent.

Headline financials

Total Revenue

$749M

Previous: $718M+4.3%
EPS (adj)

$2.32

Previous: $0.80+190.0%
Efficiency Ratio

61.7%

No prior period
Net Interest Margin

2.3%

Previous: 2.5%-8.4%
CET1 Capital Ratio

10.4%

Previous: 10.0%+4.2%
Net Income

$328M

Previous: $113M+190.3%
Operating Income

$523M

Previous: $480M+9.0%
Gross Profit

$614M

Previous: $580M+5.9%
Cash & Equivalents

$16.5B

Previous: $13.3B+24.0%
Total Assets

$88.4B

Previous: $84.4B+4.7%
Stock-Based Comp

$7M

Previous: $4M+75.0%

Revenue & EPS history

Comerica · Revenue · Quarterly

$749M

Q2 2021+4.3%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Management expects continued economic growth in the second half of 2021.

Tailwinds

  • Solid loan growth in nearly all business lines (excluding PPP).
  • Deposits to remain strong.
  • Net interest income reflects benefit of higher loan volume (excluding PPP loans) and additional days.
  • Strong credit quality continues.
  • Growth in customer-related fees due to rebounding economic activity.

Headwinds

  • More than offset by forgiveness of the bulk of PPP loans.
  • More than offset by the impact from lower PPP loans.
  • More than offset by lower card fees (decrease in stimulus activity).
  • Fiduciary (annual tax preparation fees in second quarter).
  • Deferred compensation from elevated levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-0.3%

Avg return

Earnings day

-1.9%

Avg return

5 days after

+0.0%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+7.7%

Q3 2016

Best reaction

-12.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025+2.0%+3.3%
Q3 2025+1.4%+3.7%+6.0%
Q2 2025+4.6%+6.7%+8.8%
Q1 2025-4.4%+0.3%+5.6%
Q4 2024-5.6%-5.3%-1.3%
Q3 2024-1.0%-1.0%+10.1%
Q2 2024-9.3%-8.9%-0.1%
Q1 2024+3.5%+5.7%+9.4%
Q4 2023+2.6%+0.3%-8.8%
Q3 2023-7.8%-7.8%+8.9%
Q2 2023-2.1%+1.0%-10.8%
Q1 2023-7.1%-13.5%-18.6%
Q4 2022+4.8%+7.9%+10.5%
Q3 2022-12.9%-9.5%-6.2%
Q2 2022+1.9%+1.5%+9.2%
Q1 2022-8.1%-6.9%-18.9%
Q4 2021-6.0%-9.0%-3.7%
Q3 2021+3.1%
Q2 2021+2.2%
Q1 2021-0.3%
Q4 2020-1.0%
Q3 2020+2.9%
Q2 2020+5.0%
Q1 2020+2.8%
Q4 2019-3.4%
Q3 2019-3.6%
Q2 2019-3.4%
Q1 2019+0.4%
Q4 2018+7.6%
Q3 2018+1.9%
Q2 2018+3.4%
Q1 2018-2.9%
Q4 2017+1.8%
Q3 2017+1.6%
Q2 2017-2.7%
Q1 2017+1.6%
Q4 2016-4.1%
Q3 2016+7.7%
Q2 2016+3.4%
Q1 2016+6.0%
Q4 2015-5.7%
Q3 2015-1.8%
Q2 2015-4.7%
Q1 2015-1.0%
Q4 2014-1.3%
Q3 2014-1.4%
Q2 2014+0.7%
Q1 2014-0.0%
Q4 2013+4.4%
Q3 2013+3.0%
Q2 2013-1.2%
Q1 2013+0.8%
Q4 2012+5.1%
Q4 2011+2.0%
Q3 2012-4.5%
Q2 2012+2.6%
Q1 2012+1.4%
Q3 2011-0.1%
Q2 2011-2.4%
Q1 2010+0.2%
Q1 2011+0.5%
Q1 2009-1.9%
Q4 2010-1.9%
Q4 2009-1.9%
Q4 2008-1.9%
Q3 2010+0.5%
Q3 2009+0.5%
Q2 2010+1.6%
Q2 2009+1.6%

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