Commerce Bancshares (CBSH) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. Commerce, which belongs to the Zacks Banks - Midwest industry, posted revenues of $414.49 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.01%. This compares to year-ago revenues of $397.14 million. The company has topped consens ...

Core Viewpoint - The Zacks rating system effectively utilizes earnings estimate revisions to predict near-term stock price movements, providing a more objective basis for investment decisions compared to traditional Wall Street ratings [1][9]. Earnings Estimates and Stock Movements - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors' reliance on these estimates for valuation [2][9]. - The Zacks Rank stock-rating system classifies stocks based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [3]. Recent Developments for Commerce Bancshares - Analysts have raised their earnings estimates for Commerce Bancshares, with the Zacks Consensus Estimate increasing by 10% over the past three months [4][5]. - The upgrade to a Zacks Rank 1 positions Commerce in the top 5% of Zacks-covered stocks, suggesting potential for near-term price appreciation [6][12]. - The Zacks rating upgrade reflects an improvement in Commerce's earnings outlook, which is expected to positively influence its stock price [13]. Zacks Rating System Characteristics - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings based on earnings estimate revisions [11].

Over the past 30 days, the Zacks Consensus Estimate for both 2024 and 2025 earnings has moved marginally upward. CBSH currently carries a Zacks Rank #2 (Buy). Earnings Growth: Commerce Bancshares witnessed earnings growth of 9% over the past three to five years. This was driven by the company's organic growth strategy, solid customer relationships and strong risk management. Our estimates for total revenues indicate 1.1%, 2.1% and 2.7% growth in 2024, 2025 and 2026, respectively. Commerce Bancshares, Inc. ( ...

Core Viewpoint - Commerce Bancshares, Inc. (CBSH) is positioned for growth due to strong loan demand, high interest rates, and a solid balance sheet, but faces challenges from deteriorating asset quality and high expenses [1]. Group 1: Growth and Revenue - CBSH's organic expansion efforts have led to a revenue compound annual growth rate (CAGR) of 3.5% from 2018 to 2023, driven by strong loan balances (4% CAGR) and fee income [2]. - Total revenues are projected to increase by 1.1%, 2.1%, and 2.7% in 2024, 2025, and 2026, respectively, with loan balances expected to grow at a 6% CAGR by 2026 [2]. Group 2: Interest Income and Balance Sheet - The net yield on interest-earning assets increased from 2.85% in 2022 to 3.16% in 2023, with projections of 3.30%, 3.31%, and 3.32% for 2024, 2025, and 2026 [3]. - As of March 31, 2024, CBSH's total debt was $464.1 million, with cash and due from banks totaling $1.9 billion, supported by an investment grade rating of A- from Standard & Poor's [4]. Group 3: Expenses and Asset Quality - Non-interest expenses have grown at a CAGR of 4.8% over the past five years, driven by higher salaries and benefits, with expectations of a 4.2% CAGR by 2026 [5]. - Deteriorating asset quality is a concern, with provisions for credit losses expected to rise by 11.4% in the second quarter of 2024, despite a dip in the first quarter of 2024 [6].

Commerce Bancshares (CBSH) has announced a strategic repositioning of its balance sheet following the acceptance of a share exchange deal with Visa Inc. (V) .This January, in a Securities and Exchange Commission filing, Visa announced receipt of its shareholders' approval to amend its Certificate of Incorporation “that redenominated the Visa Class B common stock to Visa Class B-1 common stock.” The shareholders also authorized V to conduct one or more exchange offers. The company’s unique share structure – ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ________________________________________________________ For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------|----------------------------------------------------- ...

Commerce Bancshares (CBSH) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this bank holding company, should get reflected in its stock price. After all, empirical research shows a strong correlation betwe ...

Shares of Commerce Bancshares Inc. (CBSH) gained 1.5% following the release of first-quarter 2024 results. Quarterly earnings per share of 86 cents surpassed the Zacks Consensus Estimate of 80 cents. However, the bottom line decreased 5.5% from the prior-year quarter.Results benefited from a rise in non-interest income and lower provisions, which were partially offset by net losses on investment securities. Also, the company recorded a sequential improvement in loan balances in the quarter. However, a decli ...

Commerce Bancshares, one of the Midwest’s strongest regional banks, joined the chorus of Q1 results reporting Tuesday (April 16) and sounded the theme of resiliency. Tipping its hat to the high interest rates and cautious consumer spending outlook that has dominated bank reporting over the past week, the company posted better than expected first-quarter earnings, citing solid consumer credit management as it continues to focus on liquidity.“Commerce delivered a strong financial performance for the first qua ...

For the quarter ended March 2024, Commerce Bancshares (CBSH) reported revenue of $397.85 million, up 2.2% over the same period last year. EPS came in at $0.86, compared to $0.90 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $385.9 million, representing a surprise of +3.10%. The company delivered an EPS surprise of +7.50%, with the consensus EPS estimate being $0.80.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...