Wall Street analysts forecast that Travelers (TRV) will report quarterly earnings of $8.37 per share in its upcoming release, pointing to a year-over-year decline of 8.5%. It is anticipated that revenues will amount to $12.41 billion, exhibiting an increase of 2.9% compared to the year-ago quarter.
Over the last 30 days, there has been an upward revision of 0.4% 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 announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision 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 Travelers metrics that are commonly monitored and projected by Wall Street analysts.
The consensus among analysts is that 'Total Revenues- Net investment income' will reach $1.05 billion. The estimate indicates a year-over-year change of +9.9%.
The consensus estimate for 'Total Revenues- Fee income' stands at $128.52 million. The estimate suggests a change of +0.4% year over year.
The combined assessment of analysts suggests that 'Total Revenues- Premiums' will likely reach $11.12 billion. The estimate indicates a year-over-year change of +2.4%.
Analysts predict that the 'Total Revenues- Other Revenues' will reach $117.76 million. The estimate indicates a change of +5.2% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Combined Ratio - Consolidated' of 87.0%. Compared to the current estimate, the company reported 83.2% in the same quarter of the previous year.
Analysts forecast 'Loss and loss adjustment expense ratio - Consolidated' to reach 58.4%. Compared to the present estimate, the company reported 55.0% in the same quarter last year.
It is projected by analysts that the 'Underwriting Expense Ratio - Consolidated' will reach 28.6%. The estimate is in contrast to the year-ago figure of 28.2%.
Based on the collective assessment of analysts, 'Loss and loss adjustment expense ratio - Business Insurance' should arrive at 59.9%. The estimate compares to the year-ago value of 56.4%.
According to the collective judgment of analysts, 'Combined Ratio - Business Insurance' should come in at 89.6%. The estimate compares to the year-ago value of 85.2%.
The average prediction of analysts places 'Combined Ratio - Bond & Specialty Insurance' at 83.6%. The estimate is in contrast to the year-ago figure of 82.7%.
Analysts' assessment points toward 'Underwriting Expense Ratio - Personal Insurance' reaching 24.9%. The estimate compares to the year-ago value of 24.5%.
Analysts expect 'Underwriting Expense Ratio - Business Insurance' to come in at 29.7%. Compared to the present estimate, the company reported 28.8% in the same quarter last year.
View all Key Company Metrics for Travelers here>>>
Shares of Travelers have demonstrated returns of -6.4% over the past month compared to the Zacks S&P 500 composite's +1.6% change. With a Zacks Rank #3 (Hold), TRV is expected to mirror the overall market performance in the near future. 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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