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East West Bank Earnings: What To Look For From EWBC

EWBC Cover Image

Cross-border banking company East West Bancorp (NASDAQ: EWBC) will be reporting results this Tuesday after the bell. Here’s what you need to know.

East West Bank beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $692.3 million, up 7.5% year on year. It was a mixed  quarter for the company, with EPS in line with analysts’ estimates.

Is East West Bank a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting East West Bank’s revenue to grow 10.2% year on year to $702.8 million, a reversal from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.25 per share.

East West Bank Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. East West Bank has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at East West Bank’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. East West Bank is up 11.5% during the same time and is heading into earnings with an average analyst price target of $114.31 (compared to the current share price of $108.73).

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