Cross-border banking company East West Bancorp (NASDAQ: EWBC) will be reporting earnings tomorrow after market close. Here’s what to look for.
East West Bank beat analysts’ revenue expectations last quarter, reporting revenues of $791.1 million, up 12.6% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates and net interest income in line with analysts’ estimates.
Is East West Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting East West Bank’s revenue to grow 8.9% year on year, slowing from the 13.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. East West Bank has a history of exceeding Wall Street’s expectations.
Looking at East West Bank’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Independent Bank delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 0.6%, and Regions Financial reported revenues up 2.6%, topping estimates by 0.6%. Independent Bank traded up 3.6% following the results.
Read our full analysis of Independent Bank’s results here and Regions Financial’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. East West Bank’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $148.38 (compared to the current share price of $126.90).
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