Wall Street analysts forecast that Arch Capital Group (ACGL) will report quarterly earnings of $2.49 per share in its upcoming release, pointing to a year-over-year increase of 10.2%. It is anticipated that revenues will amount to $4.66 billion, exhibiting an increase of 2.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
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 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.
With that in mind, let's delve into the average projections of some Arch Capital metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Revenues- Net premiums earned- Mortgage Segment' at $304.70 million. The estimate suggests a change of -0.4% year over year.
According to the collective judgment of analysts, 'Revenues- Other underwriting income (loss)' should come in at $32.51 million. The estimate points to a change of +441.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Net investment income' of $416.59 million. The estimate indicates a year-over-year change of +2.9%.
It is projected by analysts that the 'Revenues- Net premiums earned- Reinsurance Segment' will reach $1.89 billion. The estimate indicates a year-over-year change of -0.7%.
The consensus estimate for 'Loss Ratio - Total' stands at 54.1%. The estimate compares to the year-ago value of 57.5%.
Analysts' assessment points toward 'Underwriting Expense Ratio - Mortgage Segment' reaching 16.5%. The estimate compares to the year-ago value of 19.3%.
Analysts predict that the 'Expense Ratio - Other Operating Expense Ratio' will reach 10.4%. The estimate compares to the year-ago value of 9.9%.
The consensus among analysts is that 'Combined Ratio - Total' will reach 83.0%. Compared to the present estimate, the company reported 85.0% in the same quarter last year.
Based on the collective assessment of analysts, 'Underwriting Expense Ratio - Total' should arrive at 28.9%. The estimate compares to the year-ago value of 27.5%.
Analysts forecast 'Loss Ratio - Insurance Segment' to reach 59.7%. The estimate compares to the year-ago value of 66.3%.
The combined assessment of analysts suggests that 'Underwriting Expense Ratio - Acquisition Expense Ratio - Insurance Segment' will likely reach 19.4%. Compared to the present estimate, the company reported 17.9% in the same quarter last year.
Analysts expect 'Underwriting Expense Ratio - Other Operating Expense Ratio - Insurance Segment' to come in at 14.8%. The estimate is in contrast to the year-ago figure of 14.3%.
View all Key Company Metrics for Arch Capital here>>>
Shares of Arch Capital have demonstrated returns of +3.1% over the past month compared to the Zacks S&P 500 composite's +0.9% change. With a Zacks Rank #3 (Hold), ACGL 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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Arch Capital Group Ltd. (ACGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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