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American Financial (AFG) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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American Financial Group (AFG - Free Report) reported $1.88 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 5.1%. EPS of $2.76 for the same period compares to $2.89 a year ago.
The reported revenue represents a surprise of -0.19% over the Zacks Consensus Estimate of $1.89 billion. With the consensus EPS estimate being $2.77, the EPS surprise was -0.36%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Property and Casualty - Underwriting Expense Ratio: 31.5% versus 31.5% estimated by five analysts on average.
Property and Casualty - Loss and LAE Ratio: 58.6% versus 59.2% estimated by five analysts on average.
Property and Casualty - Combined Ratio - Specialty: 90.1% versus the five-analyst average estimate of 89.2%.
Specialty Casualty - Underwriting Expense Ratio: 27.3% versus 27.4% estimated by four analysts on average.
Specialty Financial - Loss and LAE Ratio: 40.2% versus 35.8% estimated by four analysts on average.
Revenues- P&C insurance net earned premiums: $1.55 billion versus the five-analyst average estimate of $1.68 billion. The reported number represents a year-over-year change of +7.6%.
Revenues- Net investment income: $198 million versus $188.56 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -8.8% change.
Specialty Casualty- Net earned premium: $730 million versus $739.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.
Property and Transportation- Net earned premium: $513 million versus the three-analyst average estimate of $631.42 million. The reported number represents a year-over-year change of +8%.
Specialty Financial- Net earned premium: $243 million versus $240.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +24% change.
Revenues- Other income (loss): $39 million versus $38.11 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.9% change.
Other Specialty- Net earned premium: $60 million versus $65.27 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.
Shares of American Financial have returned -5.6% over the past month versus the Zacks S&P 500 composite's -4.1% 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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American Financial (AFG) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
American Financial Group (AFG - Free Report) reported $1.88 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 5.1%. EPS of $2.76 for the same period compares to $2.89 a year ago.
The reported revenue represents a surprise of -0.19% over the Zacks Consensus Estimate of $1.89 billion. With the consensus EPS estimate being $2.77, the EPS surprise was -0.36%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Property and Casualty - Underwriting Expense Ratio: 31.5% versus 31.5% estimated by five analysts on average.
- Property and Casualty - Loss and LAE Ratio: 58.6% versus 59.2% estimated by five analysts on average.
- Property and Casualty - Combined Ratio - Specialty: 90.1% versus the five-analyst average estimate of 89.2%.
- Specialty Casualty - Underwriting Expense Ratio: 27.3% versus 27.4% estimated by four analysts on average.
- Specialty Financial - Loss and LAE Ratio: 40.2% versus 35.8% estimated by four analysts on average.
- Revenues- P&C insurance net earned premiums: $1.55 billion versus the five-analyst average estimate of $1.68 billion. The reported number represents a year-over-year change of +7.6%.
- Revenues- Net investment income: $198 million versus $188.56 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -8.8% change.
- Specialty Casualty- Net earned premium: $730 million versus $739.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.
- Property and Transportation- Net earned premium: $513 million versus the three-analyst average estimate of $631.42 million. The reported number represents a year-over-year change of +8%.
- Specialty Financial- Net earned premium: $243 million versus $240.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +24% change.
- Revenues- Other income (loss): $39 million versus $38.11 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.9% change.
- Other Specialty- Net earned premium: $60 million versus $65.27 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.
View all Key Company Metrics for American Financial here>>>Shares of American Financial have returned -5.6% over the past month versus the Zacks S&P 500 composite's -4.1% 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.