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Lemonade (LMND) to Report Q2 Earnings: What's in the Cards?

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Lemonade, Inc. (LMND - Free Report) is slated to report second-quarter 2021 results on Aug 4, after market close. The company delivered a negative earnings surprise of 6.59% 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 $250, up 31.6% from the year-ago reported number.

Lemonade projects gross earned premium between $63 and $65 million for the second quarter of 2021, given a likely improvement in in-force premium.

In-force premium in the to-be-reported quarter is likely to have been aided by an increase in customer base as well as improvement in premium per customer. The company estimates in- force premium between $283 and $288 million. The Zacks Consensus Estimate for the metric is pegged at $292 million, up 88.4% from year ago reported number.

Lemonade projects revenues between $26 and $27 million. The Zacks Consensus Estimate for the metric is pegged at $26.8 million.

Expenses are expected to have increased attributable to a rise in other insurance expense, technology development, and general and administrative expense. Lemonade projects adjusted EBITDA loss in the range of $43 to $44 million for the to-be-reported quarter.

What the Zacks Model Says

Our proven model predicts an earnings beat for Lemonade this time around. This is because the stock needs has the right combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Lemonade has an Earnings ESP of +10.48%. This is because the Most Accurate Estimate of a loss of 79 cents is narrower that the Zacks Consensus Estimate of a loss of 88 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 and EPS Surprise

Lemonade, Inc. price-eps-surprise | Lemonade, Inc. Quote

Zacks Rank: Lemonade currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Some other stocks worth considering from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:

American International Group (AIG - Free Report) has an Earnings ESP of +7.56% and a Zacks Rank #3.

Assurant (AIZ - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank of 3, at present.

Radian Group (RDN - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank #3.

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