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Compared to Estimates, Everest Group (EG) Q3 Earnings: A Look at Key Metrics

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For the quarter ended September 2023, Everest Group (EG - Free Report) reported revenue of $4.02 billion, up 25.6% over the same period last year. EPS came in at $14.14, compared to -$5.28 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $3.83 billion, representing a surprise of +4.94%. The company delivered an EPS surprise of +38.90%, with the consensus EPS estimate being $10.18.

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 Everest Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Loss ratio - Consolidated: 63.9% versus the four-analyst average estimate of 66%.
  • Combined ratio - Consolidated: 91.4% versus 94.6% estimated by four analysts on average.
  • Total Reinsurance - Other underwriting expense ratio: 2.5% versus the three-analyst average estimate of 2.5%.
  • Total Reinsurance - Combined ratio: 91% compared to the 96.3% average estimate based on three analysts.
  • Insurance - Total loss ratio: 64.4% compared to the 69.2% average estimate based on three analysts.
  • Insurance - Combined ratio: 92.6% versus 95.4% estimated by three analysts on average.
  • Insurance - Other underwriting expense ratio: 16.7% versus 14.7% estimated by three analysts on average.
  • Commission and Brokerage Ratio: 21.4% compared to the 20.2% average estimate based on three analysts.
  • Net investment income: $406 million compared to the $338.50 million average estimate based on four analysts. The reported number represents a change of +168.9% year over year.
  • Net premiums earned: $3.51 billion versus the four-analyst average estimate of $3.53 billion. The reported number represents a year-over-year change of +14.5%.
  • Insurance- Premiums earned: $901 million compared to the $949.64 million average estimate based on three analysts. The reported number represents a change of +9.6% year over year.
  • Total Reinsurance- Premiums earned: $2.61 billion compared to the $2.57 billion average estimate based on three analysts. The reported number represents a change of +16.4% year over year.
View all Key Company Metrics for Everest Group here>>>

Shares of Everest Group have returned +2.9% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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