Regional banking company Commerce Bancshares (NASDAQ: CBSH) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
Commerce Bancshares beat analysts’ revenue expectations last quarter, reporting revenues of $501.3 million, up 11.9% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ net interest income estimates but tangible book value per share in line with analysts’ estimates.
Is Commerce Bancshares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Commerce Bancshares’s revenue to grow 11.9% year on year, improving from the 4.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Commerce Bancshares rarely misses Wall Street’s revenue estimates.
Looking at Commerce Bancshares’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Independent Bank delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 0.6%, and Regions Financial reported revenues up 2.6%, topping estimates by 0.6%. Independent Bank traded up 3.6% following the results.
Read our full analysis of Independent Bank’s results here and Regions Financial’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Commerce Bancshares is down 1.5% during the same time and is heading into earnings with an average analyst price target of $65.56 (compared to the current share price of $55.70).
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