How did CATY's Q4 earnings surprise investors?

Cathay General Bancorp (CATY) reported strong Q4 2024 earnings, with a net income of $80.2 million, an 18.8% increase from the previous quarter. Despite this positive growth, the bank's stock fell by 7% in after-hours trading following the earnings release, which may have disappointed some investors. 1. **Earnings Per Share (EPS) Surprise**: The EPS for Q4 2024 was $0.04, which may not have been significantly better than expected, as the bank's earnings exceeded estimates, but the stock price fell. 2. **Stock Reaction**: The stock's reaction to the earnings release suggests that investors may have had concerns or reacted negatively to aspects of the report, such as potential challenges or uncertainties mentioned during the earnings call. 3. **Positive Points**: Investors may have been pleased with the 18.8% increase in net income and the bank's strong income growth, as well as the fact that the bank exceeded EPS estimates. However, these positive points may not have been enough to counterbalance any negative sentiment. 4. **Challenges and Uncertainties**: The bank faced challenges such as deposit decreases and rising nonaccrual loans, which could have contributed to the negative sentiment surrounding the stock despite the strong earnings figures. In conclusion, while CATY's Q4 earnings showed strong income growth and the bank exceeded EPS estimates, the stock fell due to potential concerns about challenges and uncertainties mentioned in the earnings call and other factors, leading to a mixed reaction from investors.