We are going to watch the stock very closely here to be sure the storm clouds are moving away from this company faster than its peers. But for now, JPMorgan is making us think about adding it back to the list of recommendations.
Comerica: Check Out the Ballpark, Not the Stock Comerica Bank(CMA Quote) just delivered news that its quarterly profit dropped 71%. Despite beating earnings estimates, the company had a $177 million provision for credit losses, up from $163 million in the first quarter. Credit-related charge-offs added up to $113 million, and looking ahead, the company sees charge-offs totaling $425 million to $450 million. Shares may experience a temporary bounce, but we would still not recommend buying this stock. Comerica made no mention of its double-digit dividend yield (which was around 11% based on last night's closing price of $23.99), but we feel it's only a matter of time before the company needs to cut its dividend in order to secure additional capital. If you need to be in the financial space, there are other plays that should come out of the storm in better shape -- think Wells Fargo. Textron Flying Low After Cautious Earnings Guidance Shares of aircraft producer Textron(TXT Quote) are tumbling Thursday, after the company delivered an earnings report that saw net earnings rise 23%. The culprits of today's price dip? Weaker-than-expected guidance and trouble in the company's financial arm. Textron's net income rose from $210 million, or 83 cents a share, a year earlier, to $258 million, or $1.02 cents a share. However, these numbers missed the company's estimated earnings guidance of 93 cents to 98 cents per share. The maker of Bell Helicopters and Cessna Airplanes also delivered guidance lower than what analysts had expected, with quarter predictions in the 80-90 cents per share range (analyst estimates were around 99 cents per share).- Loading Comments...
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