East West Bancorp (EWBC) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for East West Bancorp (EWBC) despite lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The earnings report is expected on October 22, 2024, with an anticipated EPS of $2.05, reflecting a +1.5% change year-over-year, while revenues are projected at $641.8 million, down 0.9% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.06% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for East West Bancorp is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.10% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8][9]. - East West Bancorp holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [10]. Historical Performance - In the last reported quarter, East West Bancorp exceeded the expected EPS of $1.97 by delivering $2.07, resulting in a surprise of +5.08% [11]. - The company has beaten consensus EPS estimates in each of the last four quarters [12]. Conclusion - East West Bancorp is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance ahead of the earnings release [15].