Cross-border banking company East West Bancorp (NASDAQ: EWBC) will be reporting results this Tuesday after market close. Here’s what to look for.
East West Bank beat analysts’ revenue expectations last quarter, reporting revenues of $758.3 million, up 12.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ revenue estimates but a narrow beat of analysts’ EPS 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 8.8% year on year, improving from the 7.5% 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 to 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 Q1 results, giving us a hint as to what we can expect. BancFirst delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 1%, and KeyCorp reported revenues up 10.2%, topping estimates by 0.7%. BancFirst traded up 3.6% following the results while KeyCorp was also up 1.1%.
Read our full analysis of BancFirst’s results here and KeyCorp’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 9.9% on average over the last month. East West Bank is up 12.5% during the same time and is heading into earnings with an average analyst price target of $129.75 (compared to the current share price of $118).
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