(FNHC - Free Report
a solid beat in its most recent earnings report. Normally, a
stock doesn't slip to the worst Zacks Rank after a beat, so
let's figure out why the stock is now a
Zacks Rank #5
(Strong Sell) and the Bear of the Day.
FNHC beat the Zacks Consensus Estimate of $0.64 by $0.04
6.25% positive earnings surprise in the most recent quarter.
in ahead of expectations at $68M for a 9.8% positive
Federated National Holding Company is in the business of
insurance underwriting, distribution, and claims processing.
Federated National Holding Company was founded in 1991 and is
based in Sunrise, Florida.
Usually when a stock is the Bear of the Day, the earnings
history is filled with misses. This is not the case for FNHC,
as there are only two misses in the last seven quarters.
Here is the real reason the stock is a Zacks Rank #5 (Strong
Sell) and the Bear of the Day. The Zacks Consensus Estimate
has fallen steadily over the last few months. The FY16
estimate stood at $2.84 in December but fell to $2.79 in
January and is now down to $2.42 in June.
Next year has seen estimates move from $3.31 in December to
$2.80. That sort of move will send the Zacks Rank lower.
Zacks has developed a chart that helps investors see how
earnings estimates have
the price of the stock over the last several years. We call
this chart the
consensus chart, and each color coded lines represents
analyst estimates over a
designated year. As estimates increase, the stock tends to
follow. The Zacks
impacted by earnings estimate increases, beats and
incorporates the idea of
agreement and magnitude. As a
Zacks Rank #5 (Strong Sell) we see that estimates are moving
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