Analysts expect Commerce Bancshares to report strong Q4 earnings and revenue growth, reflecting positive trends in key metrics.
Kansas City: So, Commerce Bancshares is gearing up to release its Q4 earnings report soon. Analysts are predicting they’ll hit about $0.94 per share, which is an 11.9% jump from last year. They’re also looking at revenues around $415.12 million, up 5.6% from the same time last year.
Now, it’s interesting to note that the earnings estimate has been adjusted down by about 2.4% in the last month. This shows that analysts have been rethinking their earlier predictions.
Before a company shares its earnings, it’s super important to look at these estimate changes. They can really hint at how investors might react to the stock. Research backs this up, showing a strong link between these revisions and how a stock performs in the short term.
Investors usually check out the consensus earnings and revenue numbers to gauge how the company is doing. But digging into the analysts’ projections for key metrics can give a fuller picture.
For instance, the efficiency ratio is expected to be around 57.9%, which is better than last year’s 63.8%. Analysts think the net interest margin will be about 3.5%, up from 3.2% last year.
They also estimate that the average total interest-earning assets will be around $30.01 billion, down from $31.34 billion a year ago. The Tier I leverage ratio is expected to hit 12.1%, compared to 11.3% last year.
On the non-accrual loans front, analysts are predicting $17.57 million, which is a big jump from $7.31 million last year. For total non-interest income, they expect it to reach $156.04 million, up from $144.88 million last year.
Fully-taxable equivalent net interest income is projected at $263.27 million, compared to $250.55 million last year. Trust fees are expected to be around $55.18 million, up from $49.15 million last year.
Bank card transaction fees are estimated at $48.73 million, slightly up from $47.88 million last year. Analysts also think deposit account charges and other fees will reach $25.41 million, compared to $23.52 million last year.
For consumer brokerage services, they’re looking at $5.04 million, up from $3.64 million last year. Lastly, other non-interest income is expected to be around $15.03 million, compared to $13.55 million last year.
Overall, it looks like Commerce is on a positive track, with shares up 0.7% over the past month, while the S&P 500 has dipped by 3.3%. With a Zacks Rank of #3, CBSH is likely to follow the market trend in the near future.
