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American Financial (AFG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
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American Financial Group (AFG - Free Report) reported $1.94 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.5%. EPS of $2.84 for the same period compares to $2.99 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.87 billion, representing a surprise of +3.37%. The company delivered an EPS surprise of +1.07%, with the consensus EPS estimate being $2.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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 American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Property and Transportation - Loss and LAE Ratio: 69% versus 72.4% estimated by four analysts on average.
Specialty Financial - Combined Ratio: 81.3% versus 88.5% estimated by four analysts on average.
Specialty Casualty - Loss and LAE Ratio: 59.6% versus the four-analyst average estimate of 59.2%.
Specialty Casualty - Underwriting Expense Ratio: 25% compared to the 26.4% average estimate based on four analysts.
Specialty Financial - Loss and LAE Ratio: 34.8% versus the four-analyst average estimate of 38.2%.
Revenues- P&C insurance net earned premiums: $1.73 billion versus the four-analyst average estimate of $1.68 billion. The reported number represents a year-over-year change of +6.7%.
Revenues- Net investment income: $159 million versus $186.97 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5.4% change.
Specialty Casualty- Net earned premium: $737 million compared to the $739.54 million average estimate based on three analysts. The reported number represents a change of +7.4% year over year.
Property and Transportation- Net earned premiumc`: $682 million compared to the $640.34 million average estimate based on three analysts. The reported number represents a change of 0% year over year.
Specialty Financial- Net earned premium: $244 million compared to the $231.49 million average estimate based on three analysts. The reported number represents a change of +26.4% year over year.
Revenues- Other income (loss): $46 million versus the two-analyst average estimate of $28.78 million. The reported number represents a year-over-year change of +91.7%.
Other Specialty- Net earned premium: $69 million compared to the $68.08 million average estimate based on two analysts. The reported number represents a change of +11.3% year over year.
Shares of American Financial have returned -1.4% over the past month versus the Zacks S&P 500 composite's +5.3% 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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American Financial (AFG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
American Financial Group (AFG - Free Report) reported $1.94 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.5%. EPS of $2.84 for the same period compares to $2.99 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.87 billion, representing a surprise of +3.37%. The company delivered an EPS surprise of +1.07%, with the consensus EPS estimate being $2.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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 American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Property and Transportation - Loss and LAE Ratio: 69% versus 72.4% estimated by four analysts on average.
- Specialty Financial - Combined Ratio: 81.3% versus 88.5% estimated by four analysts on average.
- Specialty Casualty - Loss and LAE Ratio: 59.6% versus the four-analyst average estimate of 59.2%.
- Specialty Casualty - Underwriting Expense Ratio: 25% compared to the 26.4% average estimate based on four analysts.
- Specialty Financial - Loss and LAE Ratio: 34.8% versus the four-analyst average estimate of 38.2%.
- Revenues- P&C insurance net earned premiums: $1.73 billion versus the four-analyst average estimate of $1.68 billion. The reported number represents a year-over-year change of +6.7%.
- Revenues- Net investment income: $159 million versus $186.97 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5.4% change.
- Specialty Casualty- Net earned premium: $737 million compared to the $739.54 million average estimate based on three analysts. The reported number represents a change of +7.4% year over year.
- Property and Transportation- Net earned premiumc`: $682 million compared to the $640.34 million average estimate based on three analysts. The reported number represents a change of 0% year over year.
- Specialty Financial- Net earned premium: $244 million compared to the $231.49 million average estimate based on three analysts. The reported number represents a change of +26.4% year over year.
- Revenues- Other income (loss): $46 million versus the two-analyst average estimate of $28.78 million. The reported number represents a year-over-year change of +91.7%.
- Other Specialty- Net earned premium: $69 million compared to the $68.08 million average estimate based on two analysts. The reported number represents a change of +11.3% year over year.
View all Key Company Metrics for American Financial here>>>Shares of American Financial have returned -1.4% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.