Zacks Research Has Optimistic Outlook of EWBC Q2 Earnings

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for East West Bancorp to $2.59 from $2.50, signaling a more optimistic outlook ahead of the company’s next earnings report. The firm also projected steady earnings growth in later quarters and into 2028.
• East West Bancorp recently beat expectations in its latest quarter, reporting EPS of $2.57 versus the $2.46 consensus and revenue of $773.75 million, up 11.8% year over year. The results showed strong profitability, including a 16.00% return on equity.
• The company also announced a quarterly dividend of $0.80 per share, equal to a 2.6% annualized yield. Meanwhile, analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $132.36.

East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) - Equities research analysts at Zacks Research boosted their Q2 2026 EPS estimates for East West Bancorp in a report issued on Tuesday, May 12th. Zacks Research analyst Team now forecasts that the financial services provider will post earnings of $2.59 per share for the quarter, up from their previous forecast of $2.50. The consensus estimate for East West Bancorp's current full-year earnings is $10.57 per share. Zacks Research also issued estimates for East West Bancorp's Q3 2026 earnings at $2.61 EPS, Q4 2026 earnings at $2.63 EPS, FY2026 earnings at $10.40 EPS, Q1 2027 earnings at $2.65 EPS, Q2 2027 earnings at $2.63 EPS, Q3 2027 earnings at $2.64 EPS, Q4 2027 earnings at $2.66 EPS, Q1 2028 earnings at $2.86 EPS and FY2028 earnings at $11.79 EPS.

Other equities research analysts have also recently issued research reports about the stock. TD Cowen upped their price objective on shares of East West Bancorp from $137.00 to $143.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Morgan Stanley cut their price target on East West Bancorp from $141.00 to $128.00 and set an "equal weight" rating on the stock in a research note on Tuesday, March 31st. UBS Group lifted their price objective on East West Bancorp from $125.00 to $138.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Piper Sandler increased their target price on East West Bancorp from $111.00 to $123.00 and gave the stock a "neutral" rating in a research note on Monday, April 27th. Finally, Keefe, Bruyette & Woods raised their price target on East West Bancorp from $131.00 to $135.00 and gave the company an "outperform" rating in a report on Friday, January 23rd. Eleven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $132.36.

East West Bancorp Stock Down 0.8%

Shares of NASDAQ:EWBC opened at $120.91 on Wednesday. The stock's 50-day moving average is $113.35 and its 200 day moving average is $112.18. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.88 and a quick ratio of 0.88. The company has a market cap of $16.56 billion, a PE ratio of 12.08, a P/E/G ratio of 1.50 and a beta of 0.97. East West Bancorp has a 1 year low of $88.26 and a 1 year high of $127.51.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $2.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.46 by $0.11. The firm had revenue of $773.75 million for the quarter, compared to analysts' expectations of $767.80 million. East West Bancorp had a return on equity of 16.00% and a net margin of 29.59%.The company's revenue for the quarter was up 11.8% compared to the same quarter last year. During the same period last year, the firm earned $2.08 earnings per share.

East West Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, May 18th. Investors of record on Monday, May 4th will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 2.6%. The ex-dividend date is Monday, May 4th. East West Bancorp's payout ratio is 31.97%.

Insiders Place Their Bets

In other East West Bancorp news, Director Archana Deskus sold 1,800 shares of the company's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $125.55, for a total value of $225,990.00. Following the completion of the sale, the director owned 13,231 shares in the company, valued at $1,661,152.05. This represents a 11.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Dominic Ng sold 30,000 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $123.49, for a total transaction of $3,704,700.00. Following the completion of the transaction, the chief executive officer owned 707,930 shares of the company's stock, valued at approximately $87,422,275.70. The trade was a 4.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.94% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of EWBC. Foster Dykema Cabot & Partners LLC bought a new stake in East West Bancorp during the third quarter valued at about $26,000. Atlantic Union Bankshares Corp purchased a new stake in shares of East West Bancorp during the fourth quarter worth about $31,000. Kelleher Financial Advisors bought a new stake in East West Bancorp during the 3rd quarter valued at approximately $31,000. Signaturefd LLC lifted its holdings in East West Bancorp by 115.0% in the 4th quarter. Signaturefd LLC now owns 344 shares of the financial services provider's stock worth $39,000 after purchasing an additional 184 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB boosted its stake in East West Bancorp by 44.7% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 366 shares of the financial services provider's stock worth $39,000 after purchasing an additional 113 shares during the period. Institutional investors own 89.53% of the company's stock.

About East West Bancorp

East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.

Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.

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