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Lemonade (LMND) to Report Q4 Earnings: What's in the Cards?
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Lemonade, Inc. (LMND - Free Report) is slated to report fourth-quarter 2020 results on Mar 1, after market close. The company delivered an earnings surprise of 17.39% in the last reported quarter.
Factors to Consider
Premiums are likely to have improved, given the company’s focus on shifting product mix toward higher value homeowner policies, introduction of Pet insurance and growth in the overall average policy value. The Zacks Consensus Estimate for premium per customer is pegged at $207.
Lemonade projects gross earned premium between $46 and $48 million for the fourth quarter of 2020, given likely improvement in in-force premium.
In-force premium in the to be reported quarter is likely to have been aided by increase in customer base as well as improvement in premium per customer. The company estimates in force premium between $200 and $205 million as on Dec 31, 2020. The Zacks Consensus Estimate for the metric is pegged at $206 million.
Lemonade projects revenues between $18 and $19 million. The Zacks Consensus Estimate for the metric is pegged at $19.3 million.
Given its exposure to catastrophes, the company is likely to have borne the brunt of catastrophe losses, stemming from hurricanes Delta and Zeta, and the Tropical Storm Eta apart from other windstorms.
Expenses are expected to have increased attributable to rise in other insurance expense, technology development, and general and administrative expense. Lemonade projects adjusted EBITDA loss in the range of $32 to $34 million for the to-be-reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Lemonade this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case as you can see below
Earnings ESP: Lemonade has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 65 cents per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Open Lending Corporation (LPRO - Free Report) has an Earnings ESP of +3.17% and a Zacks Rank #3.
Barings BDC (BBDC - Free Report) has an Earnings ESP of +7.04% and a Zacks Rank of 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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Lemonade (LMND) to Report Q4 Earnings: What's in the Cards?
Lemonade, Inc. (LMND - Free Report) is slated to report fourth-quarter 2020 results on Mar 1, after market close. The company delivered an earnings surprise of 17.39% in the last reported quarter.
Factors to Consider
Premiums are likely to have improved, given the company’s focus on shifting product mix toward higher value homeowner policies, introduction of Pet insurance and growth in the overall average policy value. The Zacks Consensus Estimate for premium per customer is pegged at $207.
Lemonade projects gross earned premium between $46 and $48 million for the fourth quarter of 2020, given likely improvement in in-force premium.
In-force premium in the to be reported quarter is likely to have been aided by increase in customer base as well as improvement in premium per customer. The company estimates in force premium between $200 and $205 million as on Dec 31, 2020. The Zacks Consensus Estimate for the metric is pegged at $206 million.
Lemonade projects revenues between $18 and $19 million. The Zacks Consensus Estimate for the metric is pegged at $19.3 million.
Given its exposure to catastrophes, the company is likely to have borne the brunt of catastrophe losses, stemming from hurricanes Delta and Zeta, and the Tropical Storm Eta apart from other windstorms.
Expenses are expected to have increased attributable to rise in other insurance expense, technology development, and general and administrative expense. Lemonade projects adjusted EBITDA loss in the range of $32 to $34 million for the to-be-reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Lemonade this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case as you can see below
Earnings ESP: Lemonade has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 65 cents per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Lemonade, Inc. Price and EPS Surprise
Lemonade, Inc. price-eps-surprise | Lemonade, Inc. Quote
Zacks Rank: Lemonade currently carries a Zacks Rank of 3.
Stocks to Consider
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
Aercap Holdings (AER - Free Report) has an Earnings ESP of +39.11% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Open Lending Corporation (LPRO - Free Report) has an Earnings ESP of +3.17% and a Zacks Rank #3.
Barings BDC (BBDC - Free Report) has an Earnings ESP of +7.04% and a Zacks Rank of 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>