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Compared to Estimates, Travelers (TRV) Q4 Earnings: A Look at Key Metrics
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For the quarter ended December 2024, Travelers (TRV - Free Report) reported revenue of $12.06 billion, up 10.3% over the same period last year. EPS came in at $9.15, compared to $7.01 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $11.94 billion, representing a surprise of +1.01%. The company delivered an EPS surprise of +39.27%, with the consensus EPS estimate being $6.57.
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 Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Underwriting Expense Ratio - Consolidated: 28.2% compared to the 28.4% average estimate based on 10 analysts.
Loss and loss adjustment expense ratio - Consolidated: 55% versus the 10-analyst average estimate of 61.5%.
Combined Ratio - Consolidated: 83.2% compared to the 90.1% average estimate based on 10 analysts.
Underwriting Expense Ratio - Business Insurance: 28.8% versus 29.4% estimated by seven analysts on average.
Total Revenues- Net investment income: $955 million versus the 10-analyst average estimate of $925.53 million. The reported number represents a year-over-year change of +22.8%.
Total Revenues- Fee income: $128 million compared to the $113.30 million average estimate based on 10 analysts. The reported number represents a change of +17.4% year over year.
Total Revenues- Premiums: $10.87 billion compared to the $10.80 billion average estimate based on 10 analysts. The reported number represents a change of +9% year over year.
Total Revenues- Other Revenues: $112 million versus the 10-analyst average estimate of $98.14 million. The reported number represents a year-over-year change of +43.6%.
Revenues- Premiums- Business Insurance: $5.54 billion versus the seven-analyst average estimate of $5.50 billion. The reported number represents a year-over-year change of +9.4%.
Revenues- Premiums- Personal Insurance: $4.31 billion versus $4.29 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +8.5% change.
Revenues- Premiums- Bond & Specialty Insurance: $1.02 billion versus $1.02 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.
Revenues- Other revenues- Personal Insurance: $25 million versus the six-analyst average estimate of $24.55 million. The reported number represents a year-over-year change of +4.2%.
Shares of Travelers have returned -1.5% over the past month versus the Zacks S&P 500 composite's +2.1% 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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Compared to Estimates, Travelers (TRV) Q4 Earnings: A Look at Key Metrics
For the quarter ended December 2024, Travelers (TRV - Free Report) reported revenue of $12.06 billion, up 10.3% over the same period last year. EPS came in at $9.15, compared to $7.01 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $11.94 billion, representing a surprise of +1.01%. The company delivered an EPS surprise of +39.27%, with the consensus EPS estimate being $6.57.
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 Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Underwriting Expense Ratio - Consolidated: 28.2% compared to the 28.4% average estimate based on 10 analysts.
- Loss and loss adjustment expense ratio - Consolidated: 55% versus the 10-analyst average estimate of 61.5%.
- Combined Ratio - Consolidated: 83.2% compared to the 90.1% average estimate based on 10 analysts.
- Underwriting Expense Ratio - Business Insurance: 28.8% versus 29.4% estimated by seven analysts on average.
- Total Revenues- Net investment income: $955 million versus the 10-analyst average estimate of $925.53 million. The reported number represents a year-over-year change of +22.8%.
- Total Revenues- Fee income: $128 million compared to the $113.30 million average estimate based on 10 analysts. The reported number represents a change of +17.4% year over year.
- Total Revenues- Premiums: $10.87 billion compared to the $10.80 billion average estimate based on 10 analysts. The reported number represents a change of +9% year over year.
- Total Revenues- Other Revenues: $112 million versus the 10-analyst average estimate of $98.14 million. The reported number represents a year-over-year change of +43.6%.
- Revenues- Premiums- Business Insurance: $5.54 billion versus the seven-analyst average estimate of $5.50 billion. The reported number represents a year-over-year change of +9.4%.
- Revenues- Premiums- Personal Insurance: $4.31 billion versus $4.29 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +8.5% change.
- Revenues- Premiums- Bond & Specialty Insurance: $1.02 billion versus $1.02 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.
- Revenues- Other revenues- Personal Insurance: $25 million versus the six-analyst average estimate of $24.55 million. The reported number represents a year-over-year change of +4.2%.
View all Key Company Metrics for Travelers here>>>Shares of Travelers have returned -1.5% over the past month versus the Zacks S&P 500 composite's +2.1% 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.