Cathay General Bancorp's Financial Performance Analysis

• Earnings Per Share (EPS) of $1.12, surpassing the estimated $1.10 and the Zacks Consensus Estimate of $1.11.
• Revenue reached approximately $186.5 million, exceeding the estimated $183 million and the Zacks Consensus Estimate by 0.80%.
• Net Income for the year ending December 31, 2024, was $286 million, with a net interest margin increase to 3.07% in the fourth quarter.

Cathay General Bancorp, listed on NASDAQ:CATY, is the holding company for Cathay Bank. It operates within the Zacks Banks - West industry, providing a range of financial services. The company competes with other regional banks, focusing on serving the banking needs of individuals and businesses. CATY's financial performance is closely watched by investors and analysts.

On January 22, 2025, CATY reported earnings per share (EPS) of $1.12, surpassing the estimated $1.10. This performance also exceeded the Zacks Consensus Estimate of $1.11, marking an earnings surprise of 0.90%. Despite this positive surprise, the EPS showed a decline from the $1.25 reported in the same quarter the previous year. Over the past four quarters, CATY has exceeded consensus EPS estimates three times.

CATY achieved a revenue of approximately $186.5 million, exceeding the estimated $183 million. This revenue also surpassed the Zacks Consensus Estimate by 0.80%. However, it represents a decline from the $205.24 million reported in the same quarter a year ago. In the last four quarters, CATY has surpassed consensus revenue estimates twice, indicating some variability in its revenue performance.

The company's financial health is further highlighted by its net income of $286 million for the year ending December 31, 2024, with $80.2 million earned in the fourth quarter alone. CATY's net interest margin increased to 3.07% in the fourth quarter, up from 3.04% in the third quarter. However, total loans decreased slightly to $19.38 billion, while total deposits increased by $360.8 million, reaching $19.69 billion.

CATY's valuation metrics include a price-to-earnings (P/E) ratio of approximately 12.15 and a price-to-sales ratio of about 2.83. The enterprise value to sales ratio is around 2.86, and the enterprise value to operating cash flow ratio is approximately 11.42. With an earnings yield of 8.23% and a low debt-to-equity ratio of 0.08, CATY demonstrates a conservative approach to leveraging debt and offers a return on investment relative to its share price.