We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ProAssurance (PRA) to Post Q4 Earnings: What You Need to Know
Read MoreHide Full Article
ProAssurance Corporation (PRA - Free Report) is set to report fourth-quarter 2021 results on Feb 21, after the closing bell.
Thanks to higher premiums, a decline in expenses and a solid contribution from the Specialty P&C Insurance, the leading specialty insurer reported fourth-quarter adjusted earnings per share of 25 cents, beating the Zacks Consensus Estimate of 15 cents. Growth in new business in the Workers' Compensation unit benefited the results.
The Zacks Consensus Estimate for fourth-quarter earnings per share of 19 cents suggests a 216.7% increase from the prior-year figure of 6 cents. The consensus estimate for fourth-quarter revenues of $269.7 million indicates a 26% increase from the year-ago reported figure.
ProAssurance beat the consensus estimate for earnings in each of the prior four quarters, with the average being 233.3%. This is depicted in the graph below:
ProAssurance’s fourth-quarter results are expected to benefit from increased net investment income and premiums earned. The Zacks Consensus Estimate for net investment income is pegged at $19.7 million, indicating an increase from $16.1 million in the year-ago period.
The consensus mark for net premiums earned is pegged at $248 million for the fourth quarter, signaling a rise from $187 million a year ago. The potential increase might result in a year-over-year improvement in the upcoming results.
The company’s cost-control efforts are expected to have boosted the bottom line in the fourth quarter. The consensus estimate for the underwriting expense ratio is pegged at 25.6%, indicating an improvement from 30.9% in the year-ago quarter.
Yet, the consensus estimate for net loss ratio is pegged at 78%, indicating an increase from the prior-year quarter’s 75%. Also, increased competition in its physician business might have affected premium retention in the fourth quarter, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ProAssurance this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 19 cents per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ProAssurance currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for ProAssurance, here are some companies from the Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Jones Lang LaSalle’s earnings per share for the to-be-reported quarter indicates a 26.3% year-over-year jump.
Crescent Capital BDC, Inc. (CCAP - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank of 3. The Zacks Consensus Estimate for Crescent Capital’s bottom line for the to-be-reported quarter is pegged at 41 cents per share. CCAP beat earnings estimates twice in the past four quarters and missed on the other two occasions.
New Mountain Finance Corporation (NMFC - Free Report) has an Earnings ESP of +1.64% and a Zacks Rank #3. The Zacks Consensus Estimate for New Mountain Finance’s bottom line for the to-be-reported quarter indicates a 3.3% year-over-year increase.
Image: Bigstock
ProAssurance (PRA) to Post Q4 Earnings: What You Need to Know
ProAssurance Corporation (PRA - Free Report) is set to report fourth-quarter 2021 results on Feb 21, after the closing bell.
Thanks to higher premiums, a decline in expenses and a solid contribution from the Specialty P&C Insurance, the leading specialty insurer reported fourth-quarter adjusted earnings per share of 25 cents, beating the Zacks Consensus Estimate of 15 cents. Growth in new business in the Workers' Compensation unit benefited the results.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share of 19 cents suggests a 216.7% increase from the prior-year figure of 6 cents. The consensus estimate for fourth-quarter revenues of $269.7 million indicates a 26% increase from the year-ago reported figure.
ProAssurance beat the consensus estimate for earnings in each of the prior four quarters, with the average being 233.3%. This is depicted in the graph below:
ProAssurance Corporation Price and EPS Surprise
ProAssurance Corporation price-eps-surprise | ProAssurance Corporation Quote
Factors to Note
ProAssurance’s fourth-quarter results are expected to benefit from increased net investment income and premiums earned. The Zacks Consensus Estimate for net investment income is pegged at $19.7 million, indicating an increase from $16.1 million in the year-ago period.
The consensus mark for net premiums earned is pegged at $248 million for the fourth quarter, signaling a rise from $187 million a year ago. The potential increase might result in a year-over-year improvement in the upcoming results.
The company’s cost-control efforts are expected to have boosted the bottom line in the fourth quarter. The consensus estimate for the underwriting expense ratio is pegged at 25.6%, indicating an improvement from 30.9% in the year-ago quarter.
Yet, the consensus estimate for net loss ratio is pegged at 78%, indicating an increase from the prior-year quarter’s 75%. Also, increased competition in its physician business might have affected premium retention in the fourth quarter, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ProAssurance this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 19 cents per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ProAssurance currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for ProAssurance, here are some companies from the Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Jones Lang LaSalle Incorporated (JLL - Free Report) has an Earnings ESP of +9.23% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Jones Lang LaSalle’s earnings per share for the to-be-reported quarter indicates a 26.3% year-over-year jump.
Crescent Capital BDC, Inc. (CCAP - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank of 3. The Zacks Consensus Estimate for Crescent Capital’s bottom line for the to-be-reported quarter is pegged at 41 cents per share. CCAP beat earnings estimates twice in the past four quarters and missed on the other two occasions.
New Mountain Finance Corporation (NMFC - Free Report) has an Earnings ESP of +1.64% and a Zacks Rank #3. The Zacks Consensus Estimate for New Mountain Finance’s bottom line for the to-be-reported quarter indicates a 3.3% year-over-year increase.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.