Analysts on Wall Street project that Travelers (TRV) will announce quarterly earnings of $5.56 per share in its forthcoming report, representing an increase of 6.1% year over year. Revenues are projected to reach $12.35 billion, increasing 4.2% from the same quarter last year.
The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Travelers metrics that are commonly monitored and projected by Wall Street analysts.
Analysts forecast 'Total Revenues- Net investment income' to reach $981.39 million. The estimate points to a change of +8.6% from the year-ago quarter.
It is projected by analysts that the 'Total Revenues- Fee income' will reach $123.68 million. The estimate indicates a year-over-year change of +2.2%.
Analysts predict that the 'Total Revenues- Premiums' will reach $11.14 billion. The estimate indicates a change of +4.1% from the prior-year quarter.
Analysts' assessment points toward 'Total Revenues- Other Revenues' reaching $116.39 million. The estimate suggests a change of -3% year over year.
According to the collective judgment of analysts, 'Combined Ratio - Consolidated' should come in at 94.1%. The estimate is in contrast to the year-ago figure of 93.2%.
The collective assessment of analysts points to an estimated 'Loss and loss adjustment expense ratio - Consolidated' of 65.2%. The estimate is in contrast to the year-ago figure of 64.8%.
The average prediction of analysts places 'Underwriting Expense Ratio - Consolidated' at 28.9%. Compared to the current estimate, the company reported 28.4% in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Loss and loss adjustment expense ratio - Business Insurance' should arrive at 66.9%. The estimate is in contrast to the year-ago figure of 66.6%.
Analysts expect 'Combined Ratio - Business Insurance' to come in at 96.7%. Compared to the current estimate, the company reported 95.8% in the same quarter of the previous year.
The consensus estimate for 'Combined Ratio - Bond & Specialty Insurance' stands at 84.1%. Compared to the current estimate, the company reported 82.5% in the same quarter of the previous year.
The consensus among analysts is that 'Underwriting Expense Ratio - Personal Insurance' will reach 25.3%. Compared to the present estimate, the company reported 24.8% in the same quarter last year.
The combined assessment of analysts suggests that 'Underwriting Expense Ratio - Business Insurance' will likely reach 29.8%. Compared to the current estimate, the company reported 29.2% in the same quarter of the previous year.
View all Key Company Metrics for Travelers here>>>
Travelers shares have witnessed a change of -3.2% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), TRV is expected closely follow the overall market performance in the near term. 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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