East West Bancorp (EWBC) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates East West Bancorp (EWBC) will report a year-over-year earnings increase despite a slight decline in revenues when it releases its quarterly results for December 2024 [1][3]. Earnings Expectations - The upcoming earnings report is expected on January 23, 2025, with a consensus EPS estimate of $2.13, reflecting a +5.5$654.31 million, a decrease of 0.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.29% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for East West Bancorp is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.47% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - East West Bancorp currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, East West Bancorp exceeded the expected EPS of $2.05 by delivering$2.09, resulting in a surprise of +1.95% [12]. - The company has successfully beaten consensus EPS estimates in each of the last four quarters [13]. Industry Context - Another player in the Zacks Banks - West industry, Zions (ZION), is expected to report earnings of $1.26 per share for the same quarter, indicating a year-over-year decline of -2.3$791.67 million, reflecting a 6.8% increase from the previous year [17]. - Zions has also seen a 0.1% upward revision in its EPS estimate over the last 30 days, with an Earnings ESP of 2.13% and a Zacks Rank of 3, suggesting a likely earnings beat [18].