Cathay General (CATY) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Cathay General (CATY) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.98 per share, reflecting a -13.3% change year-over-year, with revenues projected at $182.7 million, down 5.6% from the previous year [3]. - The consensus EPS estimate has been revised 3.65% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading indicates a likely earnings beat, particularly when combined with a strong Zacks Rank [8][10]. - For Cathay, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.20%, suggesting a potential earnings beat [10]. Historical Performance - Cathay has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +1.04% surprise in the last reported quarter [11][12]. Conclusion - While Cathay appears to be a compelling candidate for an earnings beat, other factors should also be considered before making investment decisions [15].