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Here's What to Expect From HCI Group (HCI) in Q2 Earnings
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HCI Group (HCI - Free Report) is set to report second-quarter 2024 earnings on Aug 8, after market close. This Florida-focused insurance company delivered an earnings surprise in each of the last four reported quarters.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
The second-quarter results are likely to benefit from better performances across its business units.
Assumed from Citizen through TypTap, the addition of Condo Owners Reciprocal Exchange and a higher average premium per policy are likely to have favored premiums in the to-be-reported quarter. HCI formed Condo Owners Reciprocal Exchange to write commercial residential insurance in Florida.
Gross premiums earned are likely to have improved, driven by growth in Florida. The Zacks Consensus Estimate for net premiums earned is pegged at $181.7 million, indicating a 57.2% increase from the year-ago reported number. Premiums in force are likely to have benefited from all these strategic actions.
Investment income is likely to have benefited from increased yields as well as a rise in invested base due to higher cash balance. The Zacks Consensus Estimate for net investment income is pegged at $14.2 million, suggesting growth of 61.4% from the year-ago reported quarter.
Higher premiums, coupled with increased investment income, are likely to have fueled revenues. The Zacks Consensus Estimate for revenues is pegged at $196.7 million, indicating an increase of 54.5% from the year-ago reported quarter.
Losses and loss adjustment expenses are likely to have improved given better claim experience. This, combined with better pricing and prudent underwriting, is likely to have improved the loss ratio in the to-be-reported quarter. Continued efforts to control costs are likely to have added to the upside. The Zacks Consensus Estimate for loss ratio is pegged at 46.1.
The expense ratio is likely to have improved owing to higher premiums earned and lower policy acquisition, underwriting and personnel expenses. The Zacks Consensus Estimate for loss ratio is pegged at 26.1.
A higher top line, coupled with lower expense, is likely to have boosted the bottom line in the to-be-reported quarter. The Zacks Consensus Estimate for the bottom line is pegged at $3.58, indicating an increase of 193.4% from the year-ago reported number.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for HCI Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case, as you can see below.
Earnings ESP: HCI’s Earnings ESP is +9.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HCI Group currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Ares Commercial Real Estate Corp (ACRE - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 19 cents, indicating a year-over-year decrease of 45.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACRE’s earnings beat estimates in two of the last four reported quarters, missed in one and met once.
Brighthouse Financial (BHF - Free Report) has an Earnings ESP of +0.65% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $4.36, indicating an increase of 5.6% from the year-ago reported figure.
BHF's earnings beat estimates in three of the last four reported quarters while missing in one.
Oscar Health (OSCR - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings stands at 16 cents, indicating a decrease of 328.6% from the year-ago reported figure.
OSCR’s earnings beat estimates in three of the last four reported quarters while missing in one.
Image: Bigstock
Here's What to Expect From HCI Group (HCI) in Q2 Earnings
HCI Group (HCI - Free Report) is set to report second-quarter 2024 earnings on Aug 8, after market close. This Florida-focused insurance company delivered an earnings surprise in each of the last four reported quarters.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
The second-quarter results are likely to benefit from better performances across its business units.
Assumed from Citizen through TypTap, the addition of Condo Owners Reciprocal Exchange and a higher average premium per policy are likely to have favored premiums in the to-be-reported quarter. HCI formed Condo Owners Reciprocal Exchange to write commercial residential insurance in Florida.
Gross premiums earned are likely to have improved, driven by growth in Florida. The Zacks Consensus Estimate for net premiums earned is pegged at $181.7 million, indicating a 57.2% increase from the year-ago reported number. Premiums in force are likely to have benefited from all these strategic actions.
Investment income is likely to have benefited from increased yields as well as a rise in invested base due to higher cash balance. The Zacks Consensus Estimate for net investment income is pegged at $14.2 million, suggesting growth of 61.4% from the year-ago reported quarter.
Higher premiums, coupled with increased investment income, are likely to have fueled revenues. The Zacks Consensus Estimate for revenues is pegged at $196.7 million, indicating an increase of 54.5% from the year-ago reported quarter.
Losses and loss adjustment expenses are likely to have improved given better claim experience. This, combined with better pricing and prudent underwriting, is likely to have improved the loss ratio in the to-be-reported quarter. Continued efforts to control costs are likely to have added to the upside. The Zacks Consensus Estimate for loss ratio is pegged at 46.1.
The expense ratio is likely to have improved owing to higher premiums earned and lower policy acquisition, underwriting and personnel expenses. The Zacks Consensus Estimate for loss ratio is pegged at 26.1.
A higher top line, coupled with lower expense, is likely to have boosted the bottom line in the to-be-reported quarter. The Zacks Consensus Estimate for the bottom line is pegged at $3.58, indicating an increase of 193.4% from the year-ago reported number.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for HCI Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case, as you can see below.
Earnings ESP: HCI’s Earnings ESP is +9.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HCI Group, Inc. Price and EPS Surprise
HCI Group, Inc. price-eps-surprise | HCI Group, Inc. Quote
Zacks Rank: HCI Group currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Ares Commercial Real Estate Corp (ACRE - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 19 cents, indicating a year-over-year decrease of 45.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACRE’s earnings beat estimates in two of the last four reported quarters, missed in one and met once.
Brighthouse Financial (BHF - Free Report) has an Earnings ESP of +0.65% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $4.36, indicating an increase of 5.6% from the year-ago reported figure.
BHF's earnings beat estimates in three of the last four reported quarters while missing in one.
Oscar Health (OSCR - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings stands at 16 cents, indicating a decrease of 328.6% from the year-ago reported figure.
OSCR’s earnings beat estimates in three of the last four reported quarters while missing in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar