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Compared to Estimates, Cathay (CATY) Q1 Earnings: A Look at Key Metrics

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Cathay General (CATY - Free Report) reported $206.68 million in revenue for the quarter ended March 2023, representing a year-over-year increase of 15.2%. EPS of $1.32 for the same period compares to $0.99 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $206.73 million, representing a surprise of -0.03%. The company delivered an EPS surprise of +2.33%, with the consensus EPS estimate being $1.29.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Cathay performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 40.25% versus the three-analyst average estimate of 41.33%.
  • Net Interest Margin: 3.74% versus the three-analyst average estimate of 3.79%.
  • Ratio of net charge-offs to average net loans: 0.11% versus the three-analyst average estimate of 0.11%.
  • Average balance - Total interest-earning assets: $20.88 billion versus the three-analyst average estimate of $20.91 billion.
  • Total Non-Interest Income: $14.24 million versus $12.30 million estimated by three analysts on average.
  • Net interest income before provision for loan losses: $192.44 million versus the three-analyst average estimate of $195.43 million.
View all Key Company Metrics for Cathay here>>>

Shares of Cathay have returned -16.3% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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