EWBC Is Ramping

A stock we own for clients and that I have recommended on Street Insight is East West Bancorp. EWBC is bucking today's weakness and ramping hard. The company beat earnings estimates last night for the 5th consecutive quarter. EPS came in 3 cents ahead, and grew +26% from the year-ago period.

Management also raised their guidance for 2006 by a few pennies, and reitereated 2H guidance of 15-17% loan growth and 10-15% deposit growth.

Keffe, Bruyette & Woods said that EWBC continues to post the strongest fundamentals in their coverage universe. Despite a small dip in net interest margins, net interest income grew substantially (+41%). Loan growth also fared very well, despite the supposed slowdown, growing at a 29% annualized rate.

The stock is ramping 7% higher on a surge in volume. It is close to a new high.

long EWBC