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Is a Beat in Store for Arch Capital (ACGL) in Q2 Earnings?
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Arch Capital Group Ltd. (ACGL - Free Report) is slated to report second-quarter 2024 earnings on Jul 30, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average beat being 28.41%.
Factors to Consider
Rate increases, new business opportunities and growth in existing accounts in the Insurance and Reinsurance segments are likely to have favored net premiums earned.
The Zacks Consensus Estimate for net premiums earned is pegged at $3.5 billion, indicating an increase of 20.2% from the year-ago reported figure. We expect net premiums earned to increase 19.9% to $3.5 billion.
Net investment income is likely to have benefited from higher interest rates, growth in invested assets and strong operating cash flows. We expect net investment income to increase 30.9% to $316.8 million. The Zacks Consensus Estimate for investment income is pegged at $332.7 million, indicating a 37.4% increase from the year-ago reported figure.
The top line is likely to have gained from improved earned premiums and higher net investment income. The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.90 billion, indicating an increase of 21.5% from the year-ago reported figure.
Expenses are expected to have increased in the to-be-reported quarter, driven by higher losses and loss adjustment expenses, acquisition costs, other operating expenses, corporate expenses and interest expenses. We expect total expenses to increase 21.7% to $2.9 billion.
Despite catastrophe losses that induce volatility in profits, underwriting profitability is likely to have benefited from better pricing, rate increases and a balanced business mix. The Zacks Consensus Estimate for the combined ratio is pegged at 82.3. Our estimate is pegged at 82.2.
The Zacks Consensus Estimate for second-quarter 2023 earnings of $2.17 per share indicates an increase of 13% from the year-ago quarter’s reported figure.
What the Zacks Model Says
Our proven model predicts an earnings beat for Arch Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Arch Capital has an Earnings ESP of +0.55%. This is because the Most Accurate Estimate of $2.18 is pegged higher than the Zacks Consensus Estimate of $2.17. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: ACGL currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +36.50% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 33 cents per share, indicating a year-over-year increase of 107.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALL’s earnings beat estimates in three of the last four reported quarters and missed in one.
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.52, indicating a year-over-year increase of 13%.
AXS’ earnings beat estimates in each of the last four quarters.
Fidelity National Financial, Inc. (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year increase of 25.7%.
FNF’s earnings beat estimates in one of the last four reported quarters and missed in the other three.
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Is a Beat in Store for Arch Capital (ACGL) in Q2 Earnings?
Arch Capital Group Ltd. (ACGL - Free Report) is slated to report second-quarter 2024 earnings on Jul 30, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average beat being 28.41%.
Factors to Consider
Rate increases, new business opportunities and growth in existing accounts in the Insurance and Reinsurance segments are likely to have favored net premiums earned.
The Zacks Consensus Estimate for net premiums earned is pegged at $3.5 billion, indicating an increase of 20.2% from the year-ago reported figure. We expect net premiums earned to increase 19.9% to $3.5 billion.
Net investment income is likely to have benefited from higher interest rates, growth in invested assets and strong operating cash flows. We expect net investment income to increase 30.9% to $316.8 million. The Zacks Consensus Estimate for investment income is pegged at $332.7 million, indicating a 37.4% increase from the year-ago reported figure.
The top line is likely to have gained from improved earned premiums and higher net investment income. The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.90 billion, indicating an increase of 21.5% from the year-ago reported figure.
Expenses are expected to have increased in the to-be-reported quarter, driven by higher losses and loss adjustment expenses, acquisition costs, other operating expenses, corporate expenses and interest expenses. We expect total expenses to increase 21.7% to $2.9 billion.
Despite catastrophe losses that induce volatility in profits, underwriting profitability is likely to have benefited from better pricing, rate increases and a balanced business mix. The Zacks Consensus Estimate for the combined ratio is pegged at 82.3. Our estimate is pegged at 82.2.
The Zacks Consensus Estimate for second-quarter 2023 earnings of $2.17 per share indicates an increase of 13% from the year-ago quarter’s reported figure.
What the Zacks Model Says
Our proven model predicts an earnings beat for Arch Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Arch Capital has an Earnings ESP of +0.55%. This is because the Most Accurate Estimate of $2.18 is pegged higher than the Zacks Consensus Estimate of $2.17. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Arch Capital Group Ltd. Price and EPS Surprise
Arch Capital Group Ltd. price-eps-surprise | Arch Capital Group Ltd. Quote
Zacks Rank: ACGL currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +36.50% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 33 cents per share, indicating a year-over-year increase of 107.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALL’s earnings beat estimates in three of the last four reported quarters and missed in one.
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.52, indicating a year-over-year increase of 13%.
AXS’ earnings beat estimates in each of the last four quarters.
Fidelity National Financial, Inc. (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year increase of 25.7%.
FNF’s earnings beat estimates in one of the last four reported quarters and missed in the other three.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.