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Cathay (CATY) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
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Wall Street analysts forecast that Cathay General (CATY - Free Report) will report quarterly earnings of $1.10 per share in its upcoming release, pointing to a year-over-year decline of 17.3%. It is anticipated that revenues will amount to $197.95 million, exhibiting a decline of 7.5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Cathay metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 48.7%. Compared to the present estimate, the company reported 38% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Average balance - Total interest-earning assets' of $21.85 billion. Compared to the current estimate, the company reported $20.68 billion in the same quarter of the previous year.
The consensus among analysts is that 'Net Interest Margin' will reach 3.4%. The estimate compares to the year-ago value of 3.9%.
Analysts forecast 'Tier 1 leverage capital ratio' to reach 10.9%. Compared to the current estimate, the company reported 10.1% in the same quarter of the previous year.
Analysts' assessment points toward 'Net interest income before provision for loan losses' reaching $184.56 million. Compared to the current estimate, the company reported $201.81 million in the same quarter of the previous year.
The consensus estimate for 'Total Non-Interest Income' stands at $13.64 million. Compared to the present estimate, the company reported $12.09 million in the same quarter last year.
Over the past month, Cathay shares have recorded returns of -4.2% versus the Zacks S&P 500 composite's +1.6% change. Based on its Zacks Rank #4 (Sell), CATY will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Cathay (CATY) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
Wall Street analysts forecast that Cathay General (CATY - Free Report) will report quarterly earnings of $1.10 per share in its upcoming release, pointing to a year-over-year decline of 17.3%. It is anticipated that revenues will amount to $197.95 million, exhibiting a decline of 7.5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Cathay metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 48.7%. Compared to the present estimate, the company reported 38% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Average balance - Total interest-earning assets' of $21.85 billion. Compared to the current estimate, the company reported $20.68 billion in the same quarter of the previous year.
The consensus among analysts is that 'Net Interest Margin' will reach 3.4%. The estimate compares to the year-ago value of 3.9%.
Analysts forecast 'Tier 1 leverage capital ratio' to reach 10.9%. Compared to the current estimate, the company reported 10.1% in the same quarter of the previous year.
Analysts' assessment points toward 'Net interest income before provision for loan losses' reaching $184.56 million. Compared to the current estimate, the company reported $201.81 million in the same quarter of the previous year.
The consensus estimate for 'Total Non-Interest Income' stands at $13.64 million. Compared to the present estimate, the company reported $12.09 million in the same quarter last year.
View all Key Company Metrics for Cathay here>>>
Over the past month, Cathay shares have recorded returns of -4.2% versus the Zacks S&P 500 composite's +1.6% change. Based on its Zacks Rank #4 (Sell), CATY will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>