2008-08-29 12:04:05 -

- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Neena Mishra, who discusses Wilmington Trust (NYSE: WL) and Comerica (NYSE: CMA).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: at.zacks.com/?id=2678.

Tell us about some Sell recommendations you have made recently.

Wilmington Trust's (NYSE: WL)

2Q08 operating earnings of $0.47 per diluted share were two pennies short of consensus. Results were hurt by 20 bps sequential margin compression and 85.0% sequential increase in loan loss provisions, which more than offset the growth in the non-interest income (mainly based on 21.9% increase in revenues for the Corporate Client Services).

Credit quality deteriorated during the quarter, with both non-performing assets (up 7 bps sequentially) and net charge-offs (up 14 bps) rising during the quarter. After reviewing the results, we are reducing our FY08 and FY09 estimates.

Also, Comerica's (NYSE: CMA) 2Q08 adjusted earnings from continuing operations of $0.58 per share were four cents short of our estimate. The miss mainly stemmed from a decline in net interest margin (down 31 bps sequentially to 2.91%) and a rise in the provision for loan losses.

Comerica is also heavily exposed to the real estate development downcycle, isn't it?

This is true. Continued deterioration in the residential real estate development loan portfolio, mainly in California, resulted in the increase of nonperforming assets to 1.44% (up 37 bps sequentially) of total loans and foreclosed property.

As we suspect that the credit related costs will remain high in the coming quarters and the company may also need to cut its dividend, we have further lowered our EPS estimates and our six-month target price.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks Profit from the Pros e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting at.zacks.com/?id=2679.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at at.zacks.com/?id=4581.

Visit www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Zacks.com
Mark Vickery
Zacks Web Content Editor
312-265-9380
Visit: www.zacks.com