Analysts have issued a financial statement on Cathay General Bancorp’s second quarter report (NASDAQ:CATY)


Cathay General Bancorp (NASDAQ:CATY) released its second quarter results last week, and we wanted to see how the company is doing and what industry forecasters think of the company following this report. It was a professional result, with revenue of US$190 million ahead of expectations by 2.8% and statutory earnings per share of US$1.18, in line with analysts’ assessments. Following the result, analysts have updated their earnings model, and it would be good to know if they think there has been a strong change in the company’s outlook, or if business is as it is. habit. We thought readers would find it interesting to see analysts’ latest post-earnings (statutory) forecasts for next year.

NasdaqGS: CATY Earnings and Revenue Growth July 27, 2022

Following the latest results, Cathay General Bancorp’s five analysts now forecast revenue of US$765.8 million in 2022. This would represent a notable 11% improvement in sales over the past 12 months. Statutory earnings per share are expected to increase by 11% to US$4.64. Looking ahead to this report, analysts had modeled revenue of US$765.8 million and earnings per share (EPS) of US$4.64 in 2022. So it’s pretty clear that while analysts have updated their estimates, there were no major changes. changing expectations for the company following the latest results.

There was no change in revenue or earnings estimates or the price target of US$46.67, suggesting the company met expectations in its recent results. This is not the only conclusion we can draw from this data, however, as some investors also like to take into account the discrepancy in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ​​Cathay General Bancorp at $55.00 per share, while the most bearish one values ​​it at $43.00. Still, with such a narrow range of estimates, it suggests analysts have a pretty good idea of ​​what they think the company is worth.

One way to get more context on these forecasts is to examine how they compare both to past performance and to the performance of other companies in the same industry. It is clear from the latest estimates that Cathay General Bancorp’s growth rate is set to accelerate significantly, with an annualized revenue growth forecast of 23% through the end of 2022 significantly faster than its historic growth of 4 .5% per year over the past five years. Compare that with other companies in the same industry, which are expected to grow revenue by 7.8% annually. It seems clear that while growth prospects are brighter than in the recent past, analysts also expect Cathay General Bancorp to grow faster than the industry as a whole.

The essential

The most obvious conclusion is that there has been no major shift in the company’s outlook lately, with analysts holding their earnings forecast flat, in line with previous estimates. Fortunately, there have been no major changes in the revenue forecast, with the business still expected to grow faster than the industry as a whole. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.

With that in mind, we still believe the longer-term trajectory of the company is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Cathay General Bancorp out to 2024, and you can view them for free on our platform here.

Another thing to consider is whether management and directors have bought or sold stock recently. We provide an overview of all open market stock trades over the past twelve months on our platform here.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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