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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.