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Compared to Estimates, W.R. Berkley (WRB) Q2 Earnings: A Look at Key Metrics
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W.R. Berkley (WRB - Free Report) reported $3.37 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 14.8%. EPS of $1.04 for the same period compares to $0.76 a year ago.
The reported revenue represents a surprise of +2.26% over the Zacks Consensus Estimate of $3.3 billion. With the consensus EPS estimate being $0.92, the EPS surprise was +13.04%.
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 W.R. Berkley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Combined Ratio - Total: 91.1% compared to the 91% average estimate based on four analysts.
Expense Ratio - Total: 28.5% compared to the 29.1% average estimate based on four analysts.
Loss Ratio - Insurance Segment: 64% compared to the 62% average estimate based on four analysts.
Revenues from non-insurance businesses: $125.71 million versus the four-analyst average estimate of $122.91 million. The reported number represents a year-over-year change of +10.4%.
Net premiums earned: $2.85 billion versus the four-analyst average estimate of $2.83 billion. The reported number represents a year-over-year change of +11.5%.
Net investment income: $372.13 million versus $331.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +51.8% change.
Net investment gains (losses)- Net realized gains on investment sales: -$60.31 million compared to the $19.65 million average estimate based on three analysts. The reported number represents a change of -187.9% year over year.
Insurance service fees: $27.60 million versus the three-analyst average estimate of $26.24 million. The reported number represents a year-over-year change of +8.4%.
Net premiums earned- Reinsurance & Monoline Excess: $361.85 million versus the two-analyst average estimate of $328.65 million. The reported number represents a year-over-year change of +18.1%.
Other income (loss): $0.70 million versus $0.18 million estimated by two analysts on average.
Net premiums earned- Insurance: $2.48 billion versus the two-analyst average estimate of $2.47 billion. The reported number represents a year-over-year change of +10.6%.
Shares of W.R. Berkley have returned -4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, W.R. Berkley (WRB) Q2 Earnings: A Look at Key Metrics
W.R. Berkley (WRB - Free Report) reported $3.37 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 14.8%. EPS of $1.04 for the same period compares to $0.76 a year ago.
The reported revenue represents a surprise of +2.26% over the Zacks Consensus Estimate of $3.3 billion. With the consensus EPS estimate being $0.92, the EPS surprise was +13.04%.
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 W.R. Berkley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Combined Ratio - Total: 91.1% compared to the 91% average estimate based on four analysts.
- Expense Ratio - Total: 28.5% compared to the 29.1% average estimate based on four analysts.
- Loss Ratio - Insurance Segment: 64% compared to the 62% average estimate based on four analysts.
- Revenues from non-insurance businesses: $125.71 million versus the four-analyst average estimate of $122.91 million. The reported number represents a year-over-year change of +10.4%.
- Net premiums earned: $2.85 billion versus the four-analyst average estimate of $2.83 billion. The reported number represents a year-over-year change of +11.5%.
- Net investment income: $372.13 million versus $331.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +51.8% change.
- Net investment gains (losses)- Net realized gains on investment sales: -$60.31 million compared to the $19.65 million average estimate based on three analysts. The reported number represents a change of -187.9% year over year.
- Insurance service fees: $27.60 million versus the three-analyst average estimate of $26.24 million. The reported number represents a year-over-year change of +8.4%.
- Net premiums earned- Reinsurance & Monoline Excess: $361.85 million versus the two-analyst average estimate of $328.65 million. The reported number represents a year-over-year change of +18.1%.
- Other income (loss): $0.70 million versus $0.18 million estimated by two analysts on average.
- Net premiums earned- Insurance: $2.48 billion versus the two-analyst average estimate of $2.47 billion. The reported number represents a year-over-year change of +10.6%.
View all Key Company Metrics for W.R. Berkley here>>>Shares of W.R. Berkley have returned -4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.