Commerce Bancshares's Earnings: A Preview

Commerce Bancshares CBSH announces its next round of earnings this Wednesday, January 20. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Commerce Bancshares earnings will be near $0.94 per share on sales of $345.90 million, according to analysts. Commerce Bancshares reported a per-share profit of $0.93 when it published results during the same quarter last year. Sales in that period totaled $346.12 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 1.08% increase in the company's earnings. Sales would be down 0.06% from the year-ago period. Commerce Bancshares's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.70 0.53 0.55 0.87
EPS Actual 1.11 0.34 0.44 0.93
Revenue Estimate 333.87 M 324.37 M 329.94 M 336.94 M
Revenue Actual 345.53 M 320.57 M 324.73 M 346.12 M

Stock Performance

Shares of Commerce Bancshares were trading at $70.5 as of January 18. Over the last 52-week period, shares are up 8.79%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Commerce Bancshares is scheduled to hold the call at 06:00:00 ET and can be accessed here.

Posted In: BZI-EPEarnings