The upcoming report from W.R. Berkley (WRB) is expected to reveal quarterly earnings of $1.14 per share, indicating an increase of 0.9% compared to the year-ago period. Analysts forecast revenues of $3.75 billion, representing an increase of 6.9% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific W.R. Berkley metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts expect 'Net premiums earned- Insurance' to come in at $2.84 billion. The estimate indicates a change of +7.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenues from non-insurance businesses' should come in at $159.47 million. The estimate indicates a year-over-year change of +4.4%.
Analysts predict that the 'Net investment income' will reach $362.24 million. The estimate suggests a change of +14.1% year over year.
It is projected by analysts that the 'Net premiums earned' will reach $3.22 billion. The estimate indicates a year-over-year change of +6.9%.
The consensus among analysts is that 'Loss ratio - Total' will reach 61.4%. The estimate compares to the year-ago value of 61.8%.
The collective assessment of analysts points to an estimated 'Expense Ratio - Total' of 28.6%. Compared to the present estimate, the company reported 28.4% in the same quarter last year.
Based on the collective assessment of analysts, 'Combined Ratio - Total' should arrive at 90.0%. Compared to the present estimate, the company reported 90.2% in the same quarter last year.
The combined assessment of analysts suggests that 'Loss ratio - Reinsurance & Monoline Excess' will likely reach 58.2%. The estimate is in contrast to the year-ago figure of 58.9%.
Analysts' assessment points toward 'Expense ratio - Reinsurance & Monoline Excess' reaching 31.1%. The estimate compares to the year-ago value of 29.5%.
Analysts forecast 'Combined Ratio - Reinsurance & Monoline Excess' to reach 89.3%. The estimate is in contrast to the year-ago figure of 88.4%.
The consensus estimate for 'Expense ratio - Insurance' stands at 28.0%. The estimate compares to the year-ago value of 28.3%.
The average prediction of analysts places 'Loss Ratio - Insurance Segment' at 61.5%. The estimate is in contrast to the year-ago figure of 62.2%.
View all Key Company Metrics for W.R. Berkley here>>>
Shares of W.R. Berkley have demonstrated returns of -3.6% over the past month compared to the Zacks S&P 500 composite's -0.4% change. With a Zacks Rank #4 (Sell), WRB is expected to lag 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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W.R. Berkley Corporation (WRB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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