Wall Street analysts forecast that Selective Insurance (SIGI) will report quarterly earnings of $1.89 per share in its upcoming release, pointing to a year-over-year increase of 42.1%. It is anticipated that revenues will amount to $1.3 billion, exhibiting an increase of 11.5% compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 2.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
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.
In light of this perspective, let's dive into the average estimates of certain Selective Insurance metrics that are commonly tracked and forecasted by Wall Street analysts.
The average prediction of analysts places 'Revenues- Net premiums earned' at $1.17 billion. The estimate suggests a change of +11.5% year over year.
The combined assessment of analysts suggests that 'Revenues- Net investment income earned' will likely reach $123.30 million. The estimate suggests a change of +14.4% year over year.
According to the collective judgment of analysts, 'Revenues- Excess and Surplus Lines- Net Premiums Earned' should come in at $142.47 million. The estimate indicates a year-over-year change of +26.1%.
It is projected by analysts that the 'Revenues- Standard Commercial Lines- Net Premiums Earned' will reach $914.23 million. The estimate points to a change of +9.6% from the year-ago quarter.
Analysts forecast 'Revenues- Other income' to reach $7.82 million. The estimate suggests a change of +0.2% year over year.
Analysts' assessment points toward 'Revenues- Standard Personal Lines- Net Premiums Earned' reaching $110.06 million. The estimate suggests a change of +6% year over year.
Analysts predict that the 'Underwriting expense ratio' will reach 31.6%. The estimate is in contrast to the year-ago figure of 30.9%.
The collective assessment of analysts points to an estimated 'Combined ratio' of 96.4%. The estimate is in contrast to the year-ago figure of 98.2%.
Based on the collective assessment of analysts, 'Loss and loss expense ratio' should arrive at 64.6%. The estimate is in contrast to the year-ago figure of 67%.
The consensus among analysts is that 'Standard Commercial Lines - Combined Ratio' will reach 96.8%. Compared to the current estimate, the company reported 98.8% in the same quarter of the previous year.
Analysts expect 'Standard Personal Lines - Combined Ratio' to come in at 101.5%. Compared to the present estimate, the company reported 105.1% in the same quarter last year.
The consensus estimate for 'Excess and Surplus Lines - Combined Ratio' stands at 86.7%. The estimate is in contrast to the year-ago figure of 87.6%.
View all Key Company Metrics for Selective Insurance here>>>
Over the past month, shares of Selective Insurance have returned +1.1% versus the Zacks S&P 500 composite's -5.6% change. Currently, SIGI 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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Selective Insurance Group, Inc. (SIGI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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