Cathay (CATY) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Cathay General (CATY) reported $175.18 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 15.2%. EPS of $1.10 for the same period compares to $1.32 a year ago.

The reported revenue represents a surprise of -7.24% over the Zacks Consensus Estimate of $188.85 million. With the consensus EPS estimate being $1.02, the EPS surprise was +7.84%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Cathay performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Efficiency Ratio: 53.2% versus 47.2% estimated by three analysts on average.

• Net Interest Margin: 3.1% versus 3.2% estimated by three analysts on average.

• Average balance - Total interest-earning assets: $22.25 billion versus the three-analyst average estimate of $22.19 billion.

• Tier 1 leverage capital ratio: 10.7% compared to the 10.7% average estimate based on two analysts.

• Net interest income before provision for loan losses: $168.57 million versus the three-analyst average estimate of $173.13 million.

• Total Non-Interest Income: $6.61 million versus the three-analyst average estimate of $14.36 million.

• Letters of credit commissions: $1.72 million versus the two-analyst average estimate of $1.86 million.

View all Key Company Metrics for Cathay here>>>

Shares of Cathay have returned -2.8% over the past month versus the Zacks S&P 500 composite's -4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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