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What Analyst Projections for Key Metrics Reveal About Arch Capital (ACGL) Q2 Earnings
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Wall Street analysts expect Arch Capital Group (ACGL - Free Report) to post quarterly earnings of $2.17 per share in its upcoming report, which indicates a year-over-year increase of 13%. Revenues are expected to be $3.9 billion, up 21.5% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Arch Capital metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Revenues- Net investment income' will reach $332.72 million. The estimate indicates a change of +37.5% from the prior-year quarter.
Analysts expect 'Revenues- Net premiums earned' to come in at $3.56 billion. The estimate points to a change of +20.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Net premiums earned- Insurance Segment' of $1.52 billion. The estimate points to a change of +14.8% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenues- Net premiums earned- Reinsurance Segment' will likely reach $1.75 billion. The estimate indicates a change of +30.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Loss Ratio - Total' should arrive at 53.2%. Compared to the present estimate, the company reported 50.3% in the same quarter last year.
The consensus estimate for 'Combined Ratio - Total' stands at 82.3%. The estimate is in contrast to the year-ago figure of 79.8%.
Analysts predict that the 'Expense Ratio - Other Operating Expense Ratio' will reach 10.2%. Compared to the present estimate, the company reported 10.6% in the same quarter last year.
Analysts forecast 'Expense Ratio - Total Acquisition Expense Ratio' to reach 19.0%. The estimate compares to the year-ago value of 18.9%.
Analysts' assessment points toward 'Combined Ratio - Mortgage Segment' reaching 27.2%. The estimate is in contrast to the year-ago figure of 15%.
The average prediction of analysts places 'Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment' at 16.7%. The estimate compares to the year-ago value of 5%.
According to the collective judgment of analysts, 'Underwriting Expense Ratio - Total' should come in at 28.9%. The estimate compares to the year-ago value of 29.5%.
It is projected by analysts that the 'Loss Ratio - Insurance Segment' will reach 58.4%. The estimate compares to the year-ago value of 57.3%.
Arch Capital shares have witnessed a change of -3.9% in the past month, in contrast to the Zacks S&P 500 composite's -0.2% move. With a Zacks Rank #3 (Hold), ACGL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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What Analyst Projections for Key Metrics Reveal About Arch Capital (ACGL) Q2 Earnings
Wall Street analysts expect Arch Capital Group (ACGL - Free Report) to post quarterly earnings of $2.17 per share in its upcoming report, which indicates a year-over-year increase of 13%. Revenues are expected to be $3.9 billion, up 21.5% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Arch Capital metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Revenues- Net investment income' will reach $332.72 million. The estimate indicates a change of +37.5% from the prior-year quarter.
Analysts expect 'Revenues- Net premiums earned' to come in at $3.56 billion. The estimate points to a change of +20.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Net premiums earned- Insurance Segment' of $1.52 billion. The estimate points to a change of +14.8% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenues- Net premiums earned- Reinsurance Segment' will likely reach $1.75 billion. The estimate indicates a change of +30.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Loss Ratio - Total' should arrive at 53.2%. Compared to the present estimate, the company reported 50.3% in the same quarter last year.
The consensus estimate for 'Combined Ratio - Total' stands at 82.3%. The estimate is in contrast to the year-ago figure of 79.8%.
Analysts predict that the 'Expense Ratio - Other Operating Expense Ratio' will reach 10.2%. Compared to the present estimate, the company reported 10.6% in the same quarter last year.
Analysts forecast 'Expense Ratio - Total Acquisition Expense Ratio' to reach 19.0%. The estimate compares to the year-ago value of 18.9%.
Analysts' assessment points toward 'Combined Ratio - Mortgage Segment' reaching 27.2%. The estimate is in contrast to the year-ago figure of 15%.
The average prediction of analysts places 'Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment' at 16.7%. The estimate compares to the year-ago value of 5%.
According to the collective judgment of analysts, 'Underwriting Expense Ratio - Total' should come in at 28.9%. The estimate compares to the year-ago value of 29.5%.
It is projected by analysts that the 'Loss Ratio - Insurance Segment' will reach 58.4%. The estimate compares to the year-ago value of 57.3%.
View all Key Company Metrics for Arch Capital here>>>
Arch Capital shares have witnessed a change of -3.9% in the past month, in contrast to the Zacks S&P 500 composite's -0.2% move. With a Zacks Rank #3 (Hold), ACGL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>