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RenaissanceRe's (RNR) Q3 Earnings: What's in the Cards?
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RenaissanceRe Holdings Ltd. (RNR - Free Report) is set to report third-quarter 2018 results on Oct 31, before the market opens. Last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by a whopping 73.7% and soared 87.5% year over year.
The company boasts an impressive surprise history, surpassing estimates in three of the last four quarters with an average beat of 73.75%.
Factors to be Considered in Q3
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at 10 cents. Meanwhile, the company incurred a loss of $13.81 in the year-ago quarter.
The Zacks Estimate for revenues is pegged at $609 million, up 3% from the year-ago quarter. The company has likely witnessed a positive trend in premiums written, continuing with its momentum of the past five years. This upside is driven by both its Casualty and Specialty plus Property segments.
The uptick in gross premiums written in the other property class of business are likely to be fueled by growth from Lloyd’s underwriting platform. The company’s management of risk portfolio and strength in current and new businesses are also factors driving this segment.
Performance by the Casualty and Specialty segment would likely boost the revenue base as well, aided by new business opportunities.
However, RenaissanceRe’s bottom line has likely suffered due to catastrophe loss incurred from Hurricane Florence. The company also anticipated further loss of $155 million from the net negative impact of third-quarter catastrophe events. The estimated loss from these weather-related occurrences is because of Typhoon Jebi and Hurricane Florence. The company anticipates to report modest net income available to common shareholders for the to-be-reported quarter.
In the third quarter, RenaissanceRe has possibly continued with its efforts to reduce its total expenses through operational efficiency.
What the Quantitative Model States
Our proven model does not conclusively show that RenaissanceRe is likely to beat on earnings this quarter to be reported. This is because the stock needs the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here as elaborated below.
Earnings ESP: RenaissanceRe has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
RenaissanceRe Holdings Ltd. Price and EPS Surprise
Zacks Rank: RenaissanceRe carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against the Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks worth considering from the finance sector with the right combination of elements to beat estimates this time around are as follows:
CBRE Group, Inc. (CBRE - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #2. The company is set to announce third-quarter earnings on Nov 1.
Douglas Emmett, Inc. (DEI - Free Report) has an Earnings ESP of +0.44% and is a Zacks #3 Ranked player. It is set to release third-quarter earnings on Nov 1.
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 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
RenaissanceRe's (RNR) Q3 Earnings: What's in the Cards?
RenaissanceRe Holdings Ltd. (RNR - Free Report) is set to report third-quarter 2018 results on Oct 31, before the market opens. Last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by a whopping 73.7% and soared 87.5% year over year.
The company boasts an impressive surprise history, surpassing estimates in three of the last four quarters with an average beat of 73.75%.
Factors to be Considered in Q3
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at 10 cents. Meanwhile, the company incurred a loss of $13.81 in the year-ago quarter.
The Zacks Estimate for revenues is pegged at $609 million, up 3% from the year-ago quarter. The company has likely witnessed a positive trend in premiums written, continuing with its momentum of the past five years. This upside is driven by both its Casualty and Specialty plus Property segments.
The uptick in gross premiums written in the other property class of business are likely to be fueled by growth from Lloyd’s underwriting platform. The company’s management of risk portfolio and strength in current and new businesses are also factors driving this segment.
Performance by the Casualty and Specialty segment would likely boost the revenue base as well, aided by new business opportunities.
However, RenaissanceRe’s bottom line has likely suffered due to catastrophe loss incurred from Hurricane Florence. The company also anticipated further loss of $155 million from the net negative impact of third-quarter catastrophe events. The estimated loss from these weather-related occurrences is because of Typhoon Jebi and Hurricane Florence. The company anticipates to report modest net income available to common shareholders for the to-be-reported quarter.
In the third quarter, RenaissanceRe has possibly continued with its efforts to reduce its total expenses through operational efficiency.
What the Quantitative Model States
Our proven model does not conclusively show that RenaissanceRe is likely to beat on earnings this quarter to be reported. This is because the stock needs the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here as elaborated below.
Earnings ESP: RenaissanceRe has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
RenaissanceRe Holdings Ltd. Price and EPS Surprise
RenaissanceRe Holdings Ltd. Price and EPS Surprise | RenaissanceRe Holdings Ltd. Quote
Zacks Rank: RenaissanceRe carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against the Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks worth considering from the finance sector with the right combination of elements to beat estimates this time around are as follows:
Cboe Global Markets, Inc. (CBOE - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 3. The company is set to announce third-quarter earnings on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CBRE Group, Inc. (CBRE - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #2. The company is set to announce third-quarter earnings on Nov 1.
Douglas Emmett, Inc. (DEI - Free Report) has an Earnings ESP of +0.44% and is a Zacks #3 Ranked player. It is set to release third-quarter earnings on Nov 1.
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 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>