The upcoming report from Commerce Bancshares (CBSH) is expected to reveal quarterly earnings of $0.93 per share, indicating an increase of 8.1% compared to the year-ago period. Analysts forecast revenues of $415.93 million, representing an increase of 4.6% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Commerce metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Efficiency Ratio' at 58.3%. Compared to the current estimate, the company reported 61.7% in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Net Interest Margin (Net yield on interest earning assets)' should arrive at 3.5%. Compared to the present estimate, the company reported 3.3% in the same quarter last year.
Analysts' assessment points toward 'Average total interest earning assets' reaching $30.24 billion. Compared to the current estimate, the company reported $30.37 billion in the same quarter of the previous year.
Analysts predict that the 'Tier I Leverage Ratio' will reach 12.4%. Compared to the current estimate, the company reported 11.8% in the same quarter of the previous year.
Analysts forecast 'Tier I risk-based capital ratio' to reach 16.6%. The estimate compares to the year-ago value of 15.4%.
The collective assessment of analysts points to an estimated 'Total risk-based capital ratio' of 17.4%. Compared to the current estimate, the company reported 16.1% in the same quarter of the previous year.
The consensus estimate for 'Non-accrual loans' stands at $19.15 million. Compared to the present estimate, the company reported $5.78 million in the same quarter last year.
The consensus among analysts is that 'Total Non-Interest Income' will reach $154.31 million. The estimate is in contrast to the year-ago figure of $148.85 million.
According to the collective judgment of analysts, 'Fully-taxable equivalent net interest income' should come in at $262.38 million. Compared to the present estimate, the company reported $251.31 million in the same quarter last year.
The combined assessment of analysts suggests that 'Trust fees' will likely reach $56.05 million. Compared to the current estimate, the company reported $51.11 million in the same quarter of the previous year.
It is projected by analysts that the 'Bank card transaction fees' will reach $46.74 million. The estimate is in contrast to the year-ago figure of $46.93 million.
Analysts expect 'Deposit account charges and other fees' to come in at $24.87 million. Compared to the current estimate, the company reported $24.15 million in the same quarter of the previous year.
View all Key Company Metrics for Commerce here>>>
Shares of Commerce have demonstrated returns of -4.5% over the past month compared to the Zacks S&P 500 composite's -6.1% change. With a Zacks Rank #3 (Hold), CBSH is expected to mirror the overall market performance in the near future. 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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