The upcoming report from RLI Corp. (RLI) is expected to reveal quarterly earnings of $0.90 per share, indicating a decline of 5.3% compared to the year-ago period. Analysts forecast revenues of $437.7 million, representing an increase of 11.2% year over year.
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.
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.
With that in mind, let's delve into the average projections of some RLI Corp. metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Net premiums earned' will reach $399.06 million. The estimate indicates a change of +10.6% from the prior-year quarter.
Analysts expect 'Net investment income' to come in at $38.64 million. The estimate points to a change of +17.6% from the year-ago quarter.
The combined assessment of analysts suggests that 'Net premiums earned- Property' will likely reach $133.13 million. The estimate indicates a year-over-year change of +2.9%.
The collective assessment of analysts points to an estimated 'Net premiums earned- Surety' of $37.75 million. The estimate points to a change of +14.4% from the year-ago quarter.
Analysts' assessment points toward 'Net operating expenses - Total' reaching 38.4%. The estimate compares to the year-ago value of 38.6%.
Based on the collective assessment of analysts, 'Net loss & settlement expenses - Total' should arrive at 45.7%. Compared to the current estimate, the company reported 39.9% in the same quarter of the previous year.
The consensus among analysts is that 'Underwriting income (loss) - Total' will reach 84.1%. Compared to the present estimate, the company reported 78.5% in the same quarter last year.
Analysts forecast 'Underwriting income (loss) - Surety' to reach 83.2%. The estimate compares to the year-ago value of 80.9%.
It is projected by analysts that the 'Underwriting income (loss) - Property' will reach 67.8%. The estimate is in contrast to the year-ago figure of 55.4%.
According to the collective judgment of analysts, 'Underwriting income (loss) - Casualty' should come in at 95.6%. The estimate is in contrast to the year-ago figure of 93.1%.
The average prediction of analysts places 'Net operating expenses - Property' at 30.8%. Compared to the current estimate, the company reported 30.2% in the same quarter of the previous year.
The consensus estimate for 'Net operating expenses - Casualty' stands at 36.7%. The estimate compares to the year-ago value of 37.9%.
View all Key Company Metrics for RLI Corp. here>>>
Over the past month, RLI Corp. shares have recorded returns of +2% versus the Zacks S&P 500 composite's -5.6% change. Based on its Zacks Rank #4 (Sell), RLI will likely underperform 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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RLI Corp. (RLI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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