Benzinga | Jul 21, 2021 10:53AM EDT

Earnings Outlook For East West Bancorp

East West Bancorp (NASDAQ:EWBC) announces its next round of earnings this Thursday, July 22. Here is Benzinga's look at East West Bancorp's Q2 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering East West Bancorp modeled for quarterly EPS of $1.39 on revenue of $379.38 million. In the same quarter last year, East West Bancorp announced EPS of $0.7 on revenue of $343.77 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 98.57% increase in the company's earnings. Revenue would be up 10.36% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.24 1.03 0.95 0.78EPS Actual 1.44 1.13 1.12 0.70Revenue Estimate 354.11 M 334.61 M 349.08 M 343.97 MRevenue Actual 353.69 M 346.58 M 324.13 M 343.77 M

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of East West Bancorp were trading at $68.68 as of July 20. Over the last 52-week period, shares are up 98.81%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. East West Bancorp is scheduled to hold the call at 11:30:00 ET and can be accessed here.