Wall Street analysts expect Travelers (TRV) to post quarterly earnings of $3.49 per share in its upcoming report, which indicates a year-over-year increase of 39%. Revenues are expected to be $12.2 billion, up 7.5% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Travelers metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Total Revenues- Net investment income' will reach $945.04 million. The estimate points to a change of +6.8% from the year-ago quarter.
It is projected by analysts that the 'Total Revenues- Fee income' will reach $119.98 million. The estimate indicates a change of +4.3% from the prior-year quarter.
The average prediction of analysts places 'Total Revenues- Premiums' at $11.04 billion. The estimate points to a change of +7.8% from the year-ago quarter.
The consensus estimate for 'Total Revenues- Other Revenues' stands at $109.38 million. The estimate indicates a change of +4.2% from the prior-year quarter.
Based on the collective assessment of analysts, 'Combined Ratio - Consolidated' should arrive at 99.4%. Compared to the current estimate, the company reported 100.2% in the same quarter of the previous year.
Analysts expect 'Loss and loss adjustment expense ratio - Consolidated' to come in at 70.3%. Compared to the current estimate, the company reported 71.4% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Underwriting Expense Ratio - Consolidated' of 29.1%. Compared to the present estimate, the company reported 28.8% in the same quarter last year.
Analysts predict that the 'Loss and loss adjustment expense ratio - Business Insurance' will reach 67.8%. The estimate is in contrast to the year-ago figure of 66.2%.
Analysts' assessment points toward 'Combined Ratio - Business Insurance' reaching 98.0%. The estimate is in contrast to the year-ago figure of 96.1%.
The combined assessment of analysts suggests that 'Combined Ratio - Bond & Specialty Insurance' will likely reach 86.1%. The estimate is in contrast to the year-ago figure of 87.7%.
Analysts forecast 'Underwriting Expense Ratio - Personal Insurance' to reach 25.4%. Compared to the present estimate, the company reported 24.8% in the same quarter last year.
According to the collective judgment of analysts, 'Underwriting Expense Ratio - Business Insurance' should come in at 30.2%. The estimate is in contrast to the year-ago figure of 29.9%.
View all Key Company Metrics for Travelers here>>>
Over the past month, Travelers shares have recorded returns of -3.4% versus the Zacks S&P 500 composite's +4% change. Based on its Zacks Rank #3 (Hold), TRV will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The Travelers Companies, Inc. (TRV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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