Comerica Earnings: Net Interest Income and Expense Outlook Steady

Narrow-moat-rated Comerica was mostly steady in the first quarter of 2024. Earnings per share of $0.98 missed the FactSet consensus estimate of $1.09, but excluding the FDIC special assessment and hedging losses, we estimate core EPS of $1.28. We attribute much of the core EPS beat to better-than-expected net interest income and lower loan-loss provisions. There was little in the earnings release that would alter our long-term view of the firm. We will maintain our $73 fair value estimate and regard the shares as undervalued.