What To Expect From Cathay General Bancorp's (CATY) Q2 Earnings

Regional bank Cathay General Bancorp (NASDAQ:CATY) will be announcing earnings results this Tuesday after market hours. Here’s what to look for.

Cathay General Bancorp beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $187.8 million, up 7.2% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates.

Is Cathay General Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Cathay General Bancorp’s revenue to grow 9.7% year on year to $195.9 million, a reversal from the 12.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cathay General Bancorp has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Cathay General Bancorp’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts’ expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%.

Read our full analysis of Texas Capital Bank’s results here and Nicolet Bankshares’s results here.

There has been positive sentiment among investors in the regional banks segment, with share prices up 7.7% on average over the last month. Cathay General Bancorp is up 8.2% during the same time and is heading into earnings with an average analyst price target of $49.40 (compared to the current share price of $48.20).

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