East West Bancorp’s Q4 earnings report is approaching, with analysts predicting key metrics beyond just revenue and EPS.
Pasadena: East West Bancorp (EWBC) is gearing up to release its Q4 earnings soon. Analysts are expecting earnings of $2.13 per share, which is a nice bump of 5.5% from last year. However, revenue is projected to dip slightly to $654.31 million, down 0.1% from the same quarter last year.
Interestingly, the EPS estimate has been nudged up by 0.3% in the last month. This shows that analysts are adjusting their expectations based on recent trends. It’s always good to keep an eye on these changes as they can hint at how investors might react once the earnings are out.
When companies announce earnings, it’s crucial to look at any shifts in estimates. Research shows that these revisions often correlate with how a stock performs in the short term. So, it’s not just about the numbers; it’s about the story behind them.
Now, let’s take a closer look at some key metrics that analysts are watching for East West Bancorp. They expect the net interest margin to be around 3.2%, down from 3.5% last year. It’s a small change, but it can impact overall performance.
Analysts also predict that the average balance of total interest-earning assets will hit $71.31 billion, up from $65.51 billion a year ago. That’s a solid increase and shows growth in their asset base.
Another important metric is the efficiency ratio, which is expected to be 35.5%, a significant improvement from 44.4% last year. This suggests that the bank is getting better at managing its costs.
Looking at the leverage ratio, analysts estimate it will be around 10.6%, slightly up from 10.2% last year. This indicates a stable capital structure, which is always a good sign.
For the total capital ratio, the expectation is 15.4%, compared to 14.8% last year. This shows that the bank is maintaining a strong capital position.
When it comes to the adjusted efficiency ratio, analysts are looking at 33.4%, which is a slight increase from 33.1% last year. It’s a small but positive trend.
As for the tier 1 capital ratio, they expect it to reach 14.1%, up from 13.3% last year. This is another indicator of financial health.
On the nonaccrual loans front, analysts predict it will be around $161.74 million, a jump from $102.87 million last year. This could raise some eyebrows, as it indicates more loans are not performing.
For total nonperforming assets, the estimate is $204.54 million, up from $114.02 million last year. Again, this is something to watch closely.
In terms of noninterest income, analysts expect it to reach $84.03 million, which is an increase from $79.90 million last year. This shows that the bank is diversifying its income sources.
Finally, net interest income is projected to be $571.36 million, slightly down from $574.83 million last year. And for deposit account fees, they expect $26.30 million, up from $23 million last year.
Overall, shares of East West Bancorp have seen a 4.9% increase over the past month, while the broader market has dipped slightly. With a Zacks Rank of #3 (Hold), it looks like EWBC is set to follow the market trends in the near future.
