For the quarter ended September 2024, Arch Capital Group (ACGL) reported revenue of $4.38 billion, up 24.6% over the same period last year. EPS came in at $1.99, compared to $2.31 in the year-ago quarter.

The reported revenue represents a surprise of +8.12% over the Zacks Consensus Estimate of $4.05 billion. With the consensus EPS estimate being $1.94, the EPS surprise was +2.58%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Combined Ratio - Total: 86.6% versus the five-analyst average estimate of 87.1%.
• Loss Ratio - Total: 60.5% versus 58.6% estimated by five analysts on average.
• Expense Ratio - Other Operating Expense Ratio: 8.9% compared to the 9.8% average estimate based on four analysts.
• Combined Ratio - Insurance Segment: 93.1% versus the four-analyst average estimate of 96.4%.
• Revenues- Net premiums earned: $3.97 billion versus $3.66 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +22.2% change.
• Revenues- Net investment income: $399 million versus the five-analyst average estimate of $372.52 million. The reported number represents a year-over-year change of +48.3%.
• Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $171 million versus the four-analyst average estimate of $56.80 million. The reported number represents a year-over-year change of +189.8%.
• Revenues- Other underwriting income (loss): $5 million compared to the $3.73 million average estimate based on four analysts.
• Revenues- Net premiums earned- Insurance Segment: $1.77 billion compared to the $1.54 billion average estimate based on four analysts. The reported number represents a change of +25% year over year.
• Revenues- Net premiums earned- Reinsurance Segment: $1.89 billion versus the four-analyst average estimate of $1.84 billion. The reported number represents a year-over-year change of +22.6%.
• Revenues- Net premiums earned- Mortgage Segment: $313 million versus the four-analyst average estimate of $279.90 million. The reported number represents a year-over-year change of +6.8%.
• Revenues- Other income (loss): $8 million compared to the $4.67 million average estimate based on three analysts. The reported number represents a change of -300% year over year.

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

Shares of Arch Capital have returned -7.7% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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