Wall Street analysts expect Progressive (PGR) to post quarterly earnings of $4.44 per share in its upcoming report, which indicates a year-over-year increase of 8.8%. Revenues are expected to be $21.94 billion, up 7.9% from the year-ago quarter.
The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Progressive metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Net premiums earned' stands at $20.93 billion. The estimate suggests a change of +9.3% year over year.
Analysts expect 'Companywide Total - Combined ratio' to come in at 88.6%. Compared to the current estimate, the company reported 87.9% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Policies in force - Companywide Total' of 38.60 million. The estimate compares to the year-ago value of 34.95 million.
It is projected by analysts that the 'Policies in force - Total special lines' will reach 7.01 million. The estimate compares to the year-ago value of 6.52 million.
Based on the collective assessment of analysts, 'Policies in force - Total personal auto' should arrive at 26.72 million. The estimate is in contrast to the year-ago figure of 23.77 million.
According to the collective judgment of analysts, 'Policies in force - Personal Lines - Direct auto' should come in at 15.94 million. The estimate is in contrast to the year-ago figure of 14.00 million.
Analysts predict that the 'Policies in force - Personal Lines - Agency auto' will reach 10.78 million. The estimate compares to the year-ago value of 9.78 million.
The average prediction of analysts places 'Policies in force - Total Personal Lines' at 37.40 million. Compared to the current estimate, the company reported 33.81 million in the same quarter of the previous year.
Analysts' assessment points toward 'Policies in force - Total Commercial Lines' reaching 1.20 million. The estimate compares to the year-ago value of 1.14 million.
The consensus among analysts is that 'Policies in force - Total Property business' will reach 3.68 million. The estimate compares to the year-ago value of 3.52 million.
View all Key Company Metrics for Progressive here>>>
Over the past month, shares of Progressive have returned -9.1% versus the Zacks S&P 500 composite's +0.6% change. Currently, PGR carries a Zacks Rank #4 (Sell), suggesting that it may underperform 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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The Progressive Corporation (PGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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