Comerica Shares Down 12% Since Q3 Results Announcement

Comerica (NYSE:CMA) shares lost more than 12% since the company’s reported Q3 results on Wednesday. Quarterly EPS came in at $2.60, better than the Street estimate of $2.57. Fundamental trends were solid with another quarter of rate-driven margin expansion and positive loan trends driving strong net interest income growth.

According to the analysts at RBC Capital, the near-term outlook remains positive with positive margin dynamics, though funding and deposit pricing will likely be a bigger driver of trends in 2023 and that is impacting the stock. Credit and funding are general investor concerns, but both look solid for the company.

The company’s Q4 guidance calls for a strong 4% to 5% increase in net interest income and average loan growth of approximately 1%. Fee income is expected to decrease 3% from Q3 levels due to market conditions, while expense growth is expected to rise 2% to 3%.