Wall Street analysts expect RLI Corp. (RLI) to post quarterly earnings of $0.61 per share in its upcoming report, which indicates a year-over-year decline of 6.2%. Revenues are expected to be $445.65 million, up 4.6% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 5.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during 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 usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific RLI Corp. metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Net premiums earned' of $404.26 million. The estimate indicates a change of +3.8% from the prior-year quarter.
Analysts forecast 'Net investment income' to reach $41.40 million. The estimate indicates a change of +12.8% from the prior-year quarter.
The average prediction of analysts places 'Net premiums earned- Property' at $129.53 million. The estimate indicates a change of -2.8% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net premiums earned- Surety' should arrive at $37.81 million. The estimate indicates a year-over-year change of +3.4%.
Analysts expect 'Net operating expenses - Total' to come in at 38.2%. Compared to the current estimate, the company reported 37.7% in the same quarter of the previous year.
The consensus estimate for 'Net loss & settlement expenses - Total' stands at 55.4%. Compared to the present estimate, the company reported 51.9% in the same quarter last year.
The combined assessment of analysts suggests that 'Underwriting income (loss) - Total' will likely reach 93.6%. Compared to the present estimate, the company reported 89.6% in the same quarter last year.
Analysts predict that the 'Underwriting income (loss) - Surety' will reach 86.6%. The estimate compares to the year-ago value of 78.8%.
The consensus among analysts is that 'Underwriting income (loss) - Property' will reach 93.5%. The estimate compares to the year-ago value of 77.2%.
According to the collective judgment of analysts, 'Underwriting income (loss) - Casualty' should come in at 99.1%. The estimate compares to the year-ago value of 98.8%.
Analysts' assessment points toward 'Net operating expenses - Property' reaching 32.4%. Compared to the current estimate, the company reported 31.4% in the same quarter of the previous year.
It is projected by analysts that the 'Net operating expenses - Casualty' will reach 35.8%. Compared to the current estimate, the company reported 36.0% in the same quarter of the previous year.
View all Key Company Metrics for RLI Corp. here>>>
Over the past month, shares of RLI Corp. have returned -1.5% versus the Zacks S&P 500 composite's +1% change. Currently, RLI carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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RLI Corp. (RLI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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