Wall Street analysts expect Arch Capital Group (ACGL) to post quarterly earnings of $1.85 per share in its upcoming report, which indicates a year-over-year decline of 25.7%. Revenues are expected to be $4.23 billion, up 15.2% from the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated 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.

That said, let's delve into the average estimates of some Arch Capital metrics that Wall Street analysts commonly model and monitor.

It is projected by analysts that the 'Revenues- Net premiums earned' will reach $3.87 billion. The estimate suggests a change of +15.8% year over year.

Analysts' assessment points toward 'Revenues- Net investment income' reaching $415.62 million. The estimate points to a change of +32.8% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenues- Net premiums earned- Reinsurance Segment' should arrive at $1.92 billion. The estimate points to a change of +18.7% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenues- Net premiums earned- Mortgage Segment' should come in at $280.41 million. The estimate indicates a year-over-year change of +2%.

The collective assessment of analysts points to an estimated 'Loss Ratio - Total' of 58.7%. The estimate is in contrast to the year-ago figure of 49%.

Analysts predict that the 'Combined Ratio - Total' will reach 87.3%. Compared to the current estimate, the company reported 78.9% in the same quarter of the previous year.

The average prediction of analysts places 'Expense Ratio - Other Operating Expense Ratio' at 10.1%. The estimate compares to the year-ago value of 10.7%.

The consensus among analysts is that 'Expense Ratio - Total Acquisition Expense Ratio' will reach 18.6%. The estimate is in contrast to the year-ago figure of 19.2%.

Analysts expect 'Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment' to come in at 16.1%. Compared to the present estimate, the company reported 17.1% in the same quarter last year.

The consensus estimate for 'Underwriting Expense Ratio - Total' stands at 28.7%. The estimate is in contrast to the year-ago figure of 29.9%.

The combined assessment of analysts suggests that 'Loss Ratio - Insurance Segment' will likely reach 61.4%. Compared to the present estimate, the company reported 58.4% in the same quarter last year.

Analysts forecast 'Underwriting Expense Ratio - Acquisition Expense Ratio - Insurance Segment' to reach 18.3%. The estimate is in contrast to the year-ago figure of 19.1%.

View all Key Company Metrics for Arch Capital here>>>

Shares of Arch Capital have demonstrated returns of +0.6% over the past month compared to the Zacks S&P 500 composite's +1.7% 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 >>>>

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

To read this article on Zacks.com click here.

Zacks Investment Research