Analysts on Wall Street project that Arch Capital Group (ACGL) will announce quarterly earnings of $1.98 per share in its forthcoming report, representing a decline of 14.3% year over year. Revenues are projected to reach $4.04 billion, increasing 14.9% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1% 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 use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Arch Capital metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenues- Net investment income' stands at $372.52 million. The estimate indicates a change of +38.5% from the prior-year quarter.
Analysts forecast 'Revenues- Net premiums earned' to reach $3.65 billion. The estimate points to a change of +12.3% from the year-ago quarter.
Analysts expect 'Revenues- Net premiums earned- Insurance Segment' to come in at $1.52 billion. The estimate points to a change of +7.6% from the year-ago quarter.
The average prediction of analysts places 'Revenues- Net premiums earned- Reinsurance Segment' at $1.84 billion. The estimate indicates a change of +19.5% from the prior-year quarter.
Analysts predict that the 'Loss Ratio - Total' will reach 58.6%. The estimate compares to the year-ago value of 50.7%.
The collective assessment of analysts points to an estimated 'Combined Ratio - Total' of 87.0%. The estimate is in contrast to the year-ago figure of 77.9%.
It is projected by analysts that the 'Expense Ratio - Other Operating Expense Ratio' will reach 9.8%. The estimate is in contrast to the year-ago figure of 9.5%.
The consensus among analysts is that 'Expense Ratio - Total Acquisition Expense Ratio' will reach 18.8%. The estimate is in contrast to the year-ago figure of 17.7%.
Analysts' assessment points toward 'Combined Ratio - Mortgage Segment' reaching 25.4%. The estimate is in contrast to the year-ago figure of 4.7%.
The combined assessment of analysts suggests that 'Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment' will likely reach 16.1%. Compared to the present estimate, the company reported 16.2% in the same quarter last year.
According to the collective judgment of analysts, 'Underwriting Expense Ratio - Total' should come in at 28.3%. Compared to the present estimate, the company reported 27.2% in the same quarter last year.
Based on the collective assessment of analysts, 'Loss Ratio - Insurance Segment' should arrive at 62.0%. Compared to the current estimate, the company reported 57.5% in the same quarter of the previous year.
View all Key Company Metrics for Arch Capital here>>>
Shares of Arch Capital have experienced a change of -7.2% in the past month compared to the +2% move of the Zacks S&P 500 composite. 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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