The upcoming report from Commerce Bancshares (CBSH) is expected to reveal quarterly earnings of $1.02 per share, indicating a decline of 4.7% compared to the year-ago period. Analysts forecast revenues of $430.36 million, representing an increase of 3.8% year over year.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific Commerce metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus estimate for 'Efficiency Ratio' stands at 55.9%. Compared to the current estimate, the company reported 56.0% in the same quarter of the previous year.
Analysts predict that the 'Net Interest Margin (Net yield on interest earning assets)' will reach 3.6%. The estimate compares to the year-ago value of 3.6%.
According to the collective judgment of analysts, 'Average total interest earning assets' should come in at $30.64 billion. Compared to the current estimate, the company reported $30.02 billion in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Book value per share' of $26.85 . The estimate is in contrast to the year-ago figure of $24.48 .
Based on the collective assessment of analysts, 'Tier I risk-based capital ratio' should arrive at 17.0%. The estimate compares to the year-ago value of 16.2%.
The average prediction of analysts places 'Total risk-based capital ratio' at 17.8%. Compared to the current estimate, the company reported 17.0% in the same quarter of the previous year.
Analysts expect 'Non-accrual loans' to come in at $21.76 million. Compared to the current estimate, the company reported $19.30 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Tier I Leverage Ratio' will likely reach 12.4%. Compared to the current estimate, the company reported 12.1% in the same quarter of the previous year.
Analysts forecast 'Total Non-Interest Income' to reach $157.57 million. The estimate is in contrast to the year-ago figure of $152.24 million.
Analysts' assessment points toward 'Fully-taxable equivalent net interest income' reaching $275.75 million. The estimate compares to the year-ago value of $264.58 million.
The consensus among analysts is that 'Trust fees' will reach $55.69 million. Compared to the present estimate, the company reported $52.29 million in the same quarter last year.
It is projected by analysts that the 'Bank card transaction fees' will reach $47.42 million. Compared to the present estimate, the company reported $47.48 million in the same quarter last year.
View all Key Company Metrics for Commerce here>>>
Commerce shares have witnessed a change of +6.5% in the past month, in contrast to the Zacks S&P 500 composite's +4.1% move. With a Zacks Rank #3 (Hold), CBSH is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Commerce Bancshares, Inc. (CBSH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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