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RLI Corp. (RLI) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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RLI Corp. (RLI - Free Report) reported $351.07 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 16.5%. EPS of $1.16 for the same period compares to $1.49 a year ago.
The reported revenue represents a surprise of -2.03% over the Zacks Consensus Estimate of $358.35 million. With the consensus EPS estimate being $1.20, the EPS surprise was -3.33%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Expense Ratio- Total: 39.4% compared to the 39.54% average estimate based on three analysts.
Loss Ratio- Total: 47.8% versus the three-analyst average estimate of 45.28%.
Combined Ratio (Underwriting income ratio) - Total: 87.2% versus the three-analyst average estimate of 84.83%.
Combined Ratio - Property: 74.6% compared to the 73.74% average estimate based on two analysts.
Combined Ratio - Casualty: 96.3% versus the two-analyst average estimate of 88.59%.
Combined Ratio - Surety: 75% compared to the 82.97% average estimate based on two analysts.
Net premiums earned: $322.28 million versus the three-analyst average estimate of $330.92 million. The reported number represents a year-over-year change of +14%.
Net investment income: $28.79 million versus $27.64 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +55.9% change.
Net premiums earned- Property segment: $101.84 million versus the two-analyst average estimate of $101.84 million.
Net premiums earned- Surety segment: $33.39 million versus $34.96 million estimated by two analysts on average.
Net premiums earned- Casualty segment: $187.05 million versus $193.26 million estimated by two analysts on average.
Shares of RLI Corp. have returned +5.7% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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RLI Corp. (RLI) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
RLI Corp. (RLI - Free Report) reported $351.07 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 16.5%. EPS of $1.16 for the same period compares to $1.49 a year ago.
The reported revenue represents a surprise of -2.03% over the Zacks Consensus Estimate of $358.35 million. With the consensus EPS estimate being $1.20, the EPS surprise was -3.33%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Expense Ratio- Total: 39.4% compared to the 39.54% average estimate based on three analysts.
- Loss Ratio- Total: 47.8% versus the three-analyst average estimate of 45.28%.
- Combined Ratio (Underwriting income ratio) - Total: 87.2% versus the three-analyst average estimate of 84.83%.
- Combined Ratio - Property: 74.6% compared to the 73.74% average estimate based on two analysts.
- Combined Ratio - Casualty: 96.3% versus the two-analyst average estimate of 88.59%.
- Combined Ratio - Surety: 75% compared to the 82.97% average estimate based on two analysts.
- Net premiums earned: $322.28 million versus the three-analyst average estimate of $330.92 million. The reported number represents a year-over-year change of +14%.
- Net investment income: $28.79 million versus $27.64 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +55.9% change.
- Net premiums earned- Property segment: $101.84 million versus the two-analyst average estimate of $101.84 million.
- Net premiums earned- Surety segment: $33.39 million versus $34.96 million estimated by two analysts on average.
- Net premiums earned- Casualty segment: $187.05 million versus $193.26 million estimated by two analysts on average.
View all Key Company Metrics for RLI Corp. here>>>Shares of RLI Corp. have returned +5.7% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.