Yahoo Finance Unlocking Q1 Potential of Arch Capital (ACGL): Exploring Wall Street Estimates for Key Metrics
Analysts on Wall Street project that Arch Capital Group (ACGL) will announce quarterly earnings of $2.06 per share in its forthcoming report, representing an increase of 19.1% year over year. Revenues are projected to reach $3.77 billion, increasing 22% from the same quarter last year.
Over the last 30 days, there has been an upward revision of 0.5% 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.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements 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.
Given this perspective, it's time to examine the average forecasts of specific Arch Capital metrics that are routinely monitored and predicted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Revenues- Net investment income' of $315.72 million. The estimate points to a change of +58.7% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenues- Net premiums earned' should come in at $3.45 billion. The estimate points to a change of +19.7% from the year-ago quarter.
Analysts forecast 'Revenues- Net premiums earned- Insurance Segment' to reach $1.48 billion. The estimate indicates a change of +17.7% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Net premiums earned- Reinsurance Segment' reaching $1.72 billion. The estimate indicates a change of +29.7% from the prior-year quarter.
It is projected by analysts that the 'Combined Ratio - Reinsurance Segment' will reach 82.5%. Compared to the present estimate, the company reported 84.3% in the same quarter last year.
The consensus among analysts is that 'Loss Ratio - Total' will reach 52.7%. The estimate compares to the year-ago value of 51%.
Analysts predict that the 'Combined Ratio - Total' will reach 82.1%. Compared to the current estimate, the company reported 80.6% in the same quarter of the previous year.
The average prediction of analysts places 'Loss Ratio - Reinsurance Segment' at 56.3%. Compared to the present estimate, the company reported 57.6% in the same quarter last year.
The consensus estimate for 'Combined Ratio - Insurance Segment' stands at 91.1%. The estimate compares to the year-ago value of 90.9%.
Based on the collective assessment of analysts, 'Loss Ratio - Insurance Segment' should arrive at 56.3%. The estimate compares to the year-ago value of 55.9%.
Analysts expect 'Combined Ratio - Mortgage Segment' to come in at 29.8%. Compared to the current estimate, the company reported 20% in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Underwriting Expense Ratio - Other Operating Expense Ratio - Reinsurance Segment' will likely reach 5.5%. Compared to the current estimate, the company reported 5.6% in the same quarter of the previous year.
View all Key Company Metrics for Arch Capital here>>>
Arch Capital shares have witnessed a change of +3.5% in the past month, in contrast to the Zacks S&P 500 composite's -3% move. With a Zacks Rank #3 (Hold), ACGL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
