Heritage Due to Report Q2 Earnings: Here's What to Expect

Heritage Insurance HRTG is expected to witness an improvement in its top line and its bottom line when it reports second-quarter 2025 results on Aug. 5. 

The Zacks Consensus Estimate for HRTG’s second-quarter revenues is pegged at $212.7 million, indicating a 4.2% increase from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.03 per share. The Zacks Consensus Estimate for HRTG’s second-quarter earnings witnessed no movement in the past 30 days. The estimate suggests a year-over-year increase of 68.8%.

HRTG’s Solid Earnings Surprise History

HRTG’s earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, the average surprise being 363.17%. 

What the Zacks Model Unveils for HRTG 

Our proven model does not conclusively predict an earnings beat for Heritage Insurance this time around. This is because a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: HRTG has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.03 per share.

Heritage Insurance Holdings, Inc. Price and EPS Surprise

Heritage Insurance Holdings, Inc. price-eps-surprise | Heritage Insurance Holdings, Inc. Quote

Zacks Rank: HRTG currently has a Zacks Rank #3. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape HRTG’s Q2 Results

Heritage Insurance’s second-quarter results are likely to benefit from rate adequacy, managed exposures and enhanced underwriting discipline. 

Gross premiums earned are likely to have improved, driven by rate adequacy and organic growth in commercial, residential and surplus lines business.  

Premiums-in-force are likely to have improved banking on proactive rate hikes and growth in the E&S business. 

Net investment income is likely to have benefited from a high-quality portfolio of short-duration assets. The Zacks Consensus Estimate is pegged at $8.6 million.

Total revenues are likely to have increased, driven by an increase in premiums and net investment income.

The company’s strategic lowering of exposure in over-concentrated and unprofitable areas, while increasing presence in profitable geographies and products, is likely to have driven profitability.

A reinsurance program banking on prudent exposure management initiatives is likely to have aided the company in managing catastrophe losses.   

A likely increase in higher policy acquisition costs and general and administrative expenses is expected to have driven net expense ratio. The Zacks Consensus Estimate for the metric is pegged at 35.1.

Combined ratio is likely to have improved, attributed to a lower loss ratio and expense ratio. The Zacks Consensus Estimate is pegged at 84.

Stocks to Consider

Here are three insurance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Root Inc. ROOT has an Earnings ESP of +58.28% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.06, indicating a year-over-year increase of 303.9%

ROOT’s earnings beat estimates in each of the last four reported quarters.

Palomar Holdings PLMR has an Earnings ESP of +0.25% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.68, indicating a year-over-year increase of 34.4%.

PLMR’s earnings beat estimates in each of the last four reported quarters.

Assurant AIZ has an Earnings ESP of +2.21% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43, indicating a year-over-year increase of 8.6%.

AIZ’s earnings beat estimates in each of the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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