Stock Earnings Roundup: Comerica Incorporated (NYSE:CMA) – The Point Review

Comerica Incorporated (NYSE:CMA) on April 19, 2016 reported first quarter 2016 net income of $ 60 million, compared to $ 116 million for the fourth quarter 2015 and $ 134 million for the first quarter 2015. Earnings per diluted share were 34 cents for first quarter 2016 compared to 64 cents for fourth quarter 2015 and 73 cents for first quarter 2015.

First Quarter 2016 Compared to Fourth Quarter 2015

• Average total loans decreased $ 156 million to $ 48.4 billion, primarily reflecting decreases in general Middle Market, Energy and Mortgage Banker Finance, partially offset by an increase in Commercial Real Estate. Period-end total loans increased $ 293 million, to $ 49.4 billion.
• Average total deposits decreased $ 3.0 billion to $ 56.7 billion, reflecting seasonality, purposeful pricing discipline and strategic actions in light of new liquidity coverage ratio rules, with the largest declines in Corporate Banking, the Financial Services Division and Municipalities. Period-end total deposits decreased $ 3.5 billion to $ 56.4 billion. A majority of the decrease related to an elevated deposit level associated with the government card program at year-end.
• Net interest income increased $ 14 million to $ 447 million, primarily reflecting an increase in loan yields, mostly due to increases in short-term rates, and a larger average securities portfolio, partially offset by one fewer day in the first quarter. The net interest margin increased 23 basis points to 2.81 percent, primarily reflecting higher loan yields and a decrease in Federal Reserve Bank deposits.
• The provision for credit losses increased $ 88 million to $ 148 million. The allowance for loan losses increased $ 90 million to $ 724 million, primarily due to an increase in reserves in the Energy business line, partially offset by improvements in credit quality. Net credit-related charge-offs were $ 58 million, or 0.49 percent, including $ 42 million for Energy loans.
• Noninterest income decreased $ 22 million to $ 246 million, primarily due to decreases of $ 10 million in commercial lending fees, following a strong fourth quarter 2015, and $ 7 million in deferred compensation asset returns.
• Noninterest expenses decreased $ 24 million to $ 460 million, primarily reflecting a decrease of $ 14 million in salaries and benefits expense and smaller decreases in many other categories.

Stock's Performance

Comerica Incorporated (NYSE:CMA) shares traded during its most recent trading session in the range of $ 38.75 – $ 41.85. The stock has climbed 9.01% in the past week and soared 6.14% in the last 4 weeks, historically the stock illustrate that its six months performance stands at -0.41% while its year to date performance is at 0.12%.

The stock ended previous trading session in the green zone in a volatile trading. The stock closed up +1.67 points or 4.18% at $ 41.63 with 6.27 million shares getting traded, post opening the session at $ 38.81.

Technical Look of the Stock

Comerica Incorporated (NYSE:CMA)'s distance from 20 day simple moving average is 8.48% along with distance from 50 day simple moving average of 14.09% whereas its distance from 200 day simple moving average is 1.11%.

The company's price to free cash flow for trailing twelve months is 12.36. Total debt to equity ratio of the company for most recent quarter is 0.40 whereas long term debt to equity ratio for most recent quarter is 0.40. Return on Investment (ROI) for the company is 12.40%.

Market capitalization is one of the most important characteristics that helps the investor determine the returns and the risk in the share. Market capitalization (market cap) is the total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures. Comerica Incorporated (NYSE:CMA) has a market cap of $ 7.38 billion and the number of outstanding shares have been calculated to be 174.88 million shares. In comparing the stock's current level to its extended history, the stock hit highest price level of $ 53.45 on Jun 24, 2015 and the lowest level of $ 30.48 on Feb 11, 2016 during past 52 weeks.