Watch Cathay General Bancorp's (Nasdaq: CATY) earnings report on Wednesday, July 20, to see whether the company can beat analyst expectations for the fourth consecutive quarter. Cathay General Bancorp is a holding company for Cathay Bank, which offers various financial services for individuals, professionals, and small to medium-sized businesses in California.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Cathay General Bancorp, with 12 of 13 analysts rating it a hold. Analysts don't like Cathay General Bancorp as much as competitor Nara Bancorp overall. Six out of seven analysts rate Nara Bancorp a buy, compared with one of 13 for Cathay General Bancorp. While analysts still rate the stock a hold, they are a little more optimistic about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $84.5 million in revenue this quarter. That would represent a rise of 3% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.26 per share. Estimates range from $0.23 to $0.30.

What our community says:
CAPS All-Stars are solidly backing the stock, with 83.3% assigning it an "outperform" rating. The community at large agrees with the All-Stars, with 82.7% granting it a rating of "outperform." Fools are bullish on Cathay General Bancorp, though the message boards have been quiet lately, with only 36 posts in the past 30 days. Cathay General Bancorp's bearish CAPS rating of two out of five stars falls short of the Fool community's sentiment.

Management:
Cathay General Bancorp's income has fallen year over year by an average of more than twofold. Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Net Margin 17.5% 13.5% 13.9% 1.5%
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