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Arch Capital (ACGL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended June 2024, Arch Capital Group (ACGL - Free Report) reported revenue of $3.94 billion, up 22.7% over the same period last year. EPS came in at $2.57, compared to $1.92 in the year-ago quarter.

The reported revenue represents a surprise of +0.66% over the Zacks Consensus Estimate of $3.91 billion. With the consensus EPS estimate being $2.17, the EPS surprise was +18.43%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Loss Ratio - Total

    : 51.2% compared to the 53.2% average estimate based on five analysts.
  • Combined Ratio - Total

    : 78.7% versus 82.3% estimated by five analysts on average.
  • Expense Ratio - Other Operating Expense Ratio

    : 9.7% compared to the 10.2% average estimate based on four analysts.
  • Expense Ratio - Total Acquisition Expense Ratio

    : 17.8% compared to the 19% average estimate based on four analysts.
  • Revenues- Net investment income

    : $364 million compared to the $332.72 million average estimate based on five analysts. The reported number represents a change of +50.4% year over year.
  • Revenues- Net premiums earned

    : $3.57 billion compared to the $3.56 billion average estimate based on five analysts. The reported number represents a change of +20.2% year over year.
  • Revenues- Net premiums earned- Insurance Segment

    : $1.48 billion versus $1.52 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.
  • Revenues- Net premiums earned- Reinsurance Segment

    : $1.78 billion versus $1.75 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +32.5% change.
  • Revenues- Net premiums earned- Mortgage Segment

    : $307 million versus the four-analyst average estimate of $277.64 million. The reported number represents a year-over-year change of +4.4%.
  • Revenues- Other underwriting income (loss)

    : $3 million versus $6.38 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -50% change.
  • Revenues- Equity in net income (loss) of investment funds accounted for using the equity method

    : $167 million versus $61.54 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +142% change.
  • Revenues- Other income (loss)

    : $8 million compared to the $6.67 million average estimate based on three analysts. The reported number represents a change of +166.7% year over year.
View all Key Company Metrics for Arch Capital here>>>

Shares of Arch Capital have returned -3.6% over the past month versus the Zacks S&P 500 composite's +0.1% 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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