Unveiling East West Bancorp (EWBC) Q1 Outlook: Wall Street Estimates for Key Metrics

Zacks
04-16

Wall Street analysts forecast that East West Bancorp (EWBC) will report quarterly earnings of $2.05 per share in its upcoming release, pointing to a year-over-year decline of 1.4%. It is anticipated that revenues will amount to $671.3 million, exhibiting an increase of 4.2% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some East West Bancorp metrics that are commonly tracked and projected by analysts on Wall Street.

According to the collective judgment of analysts, 'Net interest margin' should come in at 3.3%. Compared to the present estimate, the company reported 3.3% in the same quarter last year.

It is projected by analysts that the 'Efficiency ratio' will reach 37.3%. The estimate is in contrast to the year-ago figure of 38.3%.

Analysts forecast 'Tier 1 capital ratio' to reach 14.5%. The estimate is in contrast to the year-ago figure of 13.5%.

The collective assessment of analysts points to an estimated 'Total capital ratio' of 15.7%. Compared to the current estimate, the company reported 14.8% in the same quarter of the previous year.

Analysts expect 'Leverage ratio' to come in at 10.6%. Compared to the present estimate, the company reported 10.1% in the same quarter last year.

Analysts predict that the 'Average Balance - Total interest-earning assets' will reach $72.32 billion. The estimate is in contrast to the year-ago figure of $68.12 billion.

The consensus estimate for 'Adjusted efficiency ratio' stands at 35.2%. Compared to the current estimate, the company reported 34.7% in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Total nonperforming assets' will likely reach $206.36 million. Compared to the present estimate, the company reported $164.87 million in the same quarter last year.

The average prediction of analysts places 'Total nonaccrual loans' at $169.06 million. Compared to the present estimate, the company reported $148.18 million in the same quarter last year.

Based on the collective assessment of analysts, 'Net Interest Income' should arrive at $585.08 million. Compared to the current estimate, the company reported $565.14 million in the same quarter of the previous year.

The consensus among analysts is that 'Total Noninterest Income' will reach $86.22 million. The estimate compares to the year-ago value of $78.99 million.

Analysts' assessment points toward 'Deposit account fees' reaching $26.52 million. The estimate compares to the year-ago value of $24.14 million.

View all Key Company Metrics for East West Bancorp here>>>

Shares of East West Bancorp have experienced a change of -14% in the past month compared to the -4.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), EWBC is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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This article originally published on Zacks Investment Research (zacks.com).

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