Cathay General Bancorp(CATY) ZACKS·2025-01-15 16:06Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for Cathay General (CATY) in the upcoming earnings report, with a focus on how actual results compare to estimates [1][3]. Earnings Expectations - The expected quarterly earnings per share (EPS) for Cathay is 185 million, down 9.9% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.11% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.79%, complicating predictions for an earnings beat [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with positive readings being more predictive of earnings beats [7][8]. - Cathay's current Zacks Rank is 3, which does not strongly support the likelihood of an earnings beat [11]. Historical Performance - In the last reported quarter, Cathay's actual earnings of 0.98, resulting in a surprise of -1.02% [12]. - Over the past four quarters, Cathay has beaten consensus EPS estimates three times [13]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock price movement, as other factors can influence investor sentiment [14]. - Despite not appearing as a compelling earnings-beat candidate, other market conditions should be considered when evaluating Cathay's stock ahead of the earnings release [16].