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Cathay (CATY) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

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In its upcoming report, Cathay General (CATY - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.98 per share, reflecting a decline of 13.3% compared to the same period last year. Revenues are forecasted to be $182.7 million, representing a year-over-year decrease of 5.6%.

The consensus EPS estimate for the quarter has undergone a downward revision of 3.7% 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 rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

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 average prediction of analysts places 'Efficiency Ratio' at 50.9%. Compared to the present estimate, the company reported 48.6% in the same quarter last year.

The combined assessment of analysts suggests that 'Average balance - Total interest-earning assets' will likely reach $22.10 billion. Compared to the present estimate, the company reported $21.78 billion in the same quarter last year.

It is projected by analysts that the 'Net Interest Margin' will reach 3.0%. Compared to the present estimate, the company reported 3.4% in the same quarter last year.

Based on the collective assessment of analysts, 'Tier 1 leverage capital ratio' should arrive at 10.8%. The estimate compares to the year-ago value of 10.4%.

The consensus estimate for 'Net interest income before provision for loan losses' stands at $168.29 million. Compared to the present estimate, the company reported $185.64 million in the same quarter last year.

According to the collective judgment of analysts, 'Total Non-Interest Income' should come in at $14.36 million. Compared to the current estimate, the company reported $7.84 million in the same quarter of the previous year.

View all Key Company Metrics for Cathay here>>>

Over the past month, shares of Cathay have returned +4.8% versus the Zacks S&P 500 composite's +3.5% change. Currently, CATY carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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