Cathay General Bancorp (NASDAQGS:CATY) is scheduled to report Q4 earnings results on January 22, 2020. The webcast details can be found here.
The company is expected to report earnings of $0.83/share on revenue of $153 million. The consensus earnings per share (EPS) of $0.83/share is based on a poll of 5 analysts and represents a growth of 3.7% over the same quarter last year when the company reported earnings of $0.80/share.
The revenue forecast of $153 million based on a poll of 5 analysts implies a year-over-year (YoY) decline of -1.8%. Last year the company reported $155.9 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $153.00 | $155.88 | -1.8% |
| EPS | $0.83 | $0.80 | 3.7% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 2 quarters.
What are your expectations from Cathay General for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q3, 2019 | $0.89 | $0.91 | 2.2% | Beat |
| Q2, 2019 | $0.88 | $0.90 | 2.3% | Beat |
| Q1, 2019 | $0.80 | $0.83 | 3.7% | Beat |
| Q4, 2018 | $0.80 | $0.80 | 0.0% | Meet |
| Q3, 2018 | $0.85 | $0.83 | -1.8% | Missed |
| Q2, 2018 | $0.90 | $0.90 | 0.6% | Beat |
| Q1, 2018 | $0.78 | $0.78 | 0.0% | Meet |
| Q4, 2017 | $0.63 | $0.60 | -4.0% | Missed |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.
After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 1.1%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| 2019-10-16 | $34.97 | $35.36 | 1.1% | Increase |
| 2019-07-17 | $34.80 | $35.96 | 3.3% | Increase |
| 2019-04-17 | $36.22 | $35.57 | -1.8% | Decline |
| 2019-01-23 | $37.16 | $37.17 | 0.0% | Increase |
Fundamentals And Technical Analysis
Cathay General is currently trading at $37.46/share, down -1.1% for the day. The company is trading at approximately 93.5% of its 52-week high of $40.06/share. The company’s stock price is up 6.0% since the last earnings report and down -0.1% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 57.22 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
Source: Finbox The current share price implies a price-to-earnings (P/E) multiple of 10.9x and a forward P/E multiple of 11.1x.
Cathay General’s current share price also implies a price-to-book (P/B) multiple of 1.3x. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Fiscal Period | FY2019.Q3 |
| Period End Date | September 30, 2019 |
| Stock Price (Current) | $37.46 |
| P/E Ratio | 10.9x |
| P/E Ratio (Fwd) | 11.1x |
| PEG Ratio | -2.7 |
| Total Debt to Capital (%) | 21.5% |
| Levered Free Cash Flow | $413.7 million |
| Market Capitalization | $3.021 billion |
Source: Finbox
Company Profile: Cathay General Bancorp
Cathay General Bancorp is a mid-cap stock with a market capitalization of $3.021 billion. The company operates in the Financial sector and the Banks industry.
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States.
The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for automobile, household, and other consumer expenditures.
The company offers letter of credit, wire transfer, forward currency spot and forward contract, traveler’s check, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up window, automatic teller machine, Internet banking, trade financing, and other customary bank services, as well as securities and insurance products.
As of December 31, 2018, it operated 26 branches in Southern California; 14 branches in Northern California; 11 branches in New York; 3 branches in Illinois area; 4 branches in Washington; 2 branches in Texas; and 1 each branch in Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong, as well as 1 representative office in Taipei and Shanghai. The company was founded in 1962 and is headquartered in Los Angeles, California.
