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Travelers (TRV) Reports Q1 Earnings: What Key Metrics Have to Say
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Travelers (TRV - Free Report) reported $9.7 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 9.8%. EPS of $4.11 for the same period compares to $4.22 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.83 billion, representing a surprise of -1.38%. The company delivered an EPS surprise of +12.91%, with the consensus EPS estimate being $3.64.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Loss and loss adjustment expense ratio - Consolidated: 66.7% compared to the 65.32% average estimate based on six analysts.
Underwriting Expense Ratio - Consolidated: 28.7% versus 28.29% estimated by six analysts on average.
Combined Ratio - Consolidated: 95.4% versus the six-analyst average estimate of 93.63%.
Loss and loss adjustment expense ratio - Business Insurance: 63.8% versus 64.56% estimated by four analysts on average.
Total revenues- Premiums: $8.85 billion versus $8.99 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +10.5% change.
Total revenues- Other Revenues: $75 million versus the six-analyst average estimate of $86.30 million. The reported number represents a year-over-year change of -3.9%.
Total revenues- Net investment income: $663 million compared to the $658.28 million average estimate based on six analysts. The reported number represents a change of +4.1% year over year.
Total revenues- Fee income: $106 million versus the six-analyst average estimate of $105.76 million. The reported number represents a year-over-year change of +2.9%.
Total Revenues- Bond & Specialty Insurance: $953 million versus $1.01 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.9% change.
Revenues- Other revenues- Bond & Specialty Insurance: $5 million versus the four-analyst average estimate of $6.55 million. The reported number represents a year-over-year change of +25%.
Revenues- Net investment income- Bond & Specialty Insurance: $73 million versus $68.79 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.7% change.
Revenues- Fee income- Business Insurance: $99 million compared to the $101.24 million average estimate based on four analysts. The reported number represents a change of +3.1% year over year.
Shares of Travelers have returned +0.2% over the past month versus the Zacks S&P 500 composite's +6.2% 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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Travelers (TRV) Reports Q1 Earnings: What Key Metrics Have to Say
Travelers (TRV - Free Report) reported $9.7 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 9.8%. EPS of $4.11 for the same period compares to $4.22 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.83 billion, representing a surprise of -1.38%. The company delivered an EPS surprise of +12.91%, with the consensus EPS estimate being $3.64.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Loss and loss adjustment expense ratio - Consolidated: 66.7% compared to the 65.32% average estimate based on six analysts.
- Underwriting Expense Ratio - Consolidated: 28.7% versus 28.29% estimated by six analysts on average.
- Combined Ratio - Consolidated: 95.4% versus the six-analyst average estimate of 93.63%.
- Loss and loss adjustment expense ratio - Business Insurance: 63.8% versus 64.56% estimated by four analysts on average.
- Total revenues- Premiums: $8.85 billion versus $8.99 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +10.5% change.
- Total revenues- Other Revenues: $75 million versus the six-analyst average estimate of $86.30 million. The reported number represents a year-over-year change of -3.9%.
- Total revenues- Net investment income: $663 million compared to the $658.28 million average estimate based on six analysts. The reported number represents a change of +4.1% year over year.
- Total revenues- Fee income: $106 million versus the six-analyst average estimate of $105.76 million. The reported number represents a year-over-year change of +2.9%.
- Total Revenues- Bond & Specialty Insurance: $953 million versus $1.01 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.9% change.
- Revenues- Other revenues- Bond & Specialty Insurance: $5 million versus the four-analyst average estimate of $6.55 million. The reported number represents a year-over-year change of +25%.
- Revenues- Net investment income- Bond & Specialty Insurance: $73 million versus $68.79 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.7% change.
- Revenues- Fee income- Business Insurance: $99 million compared to the $101.24 million average estimate based on four analysts. The reported number represents a change of +3.1% year over year.
View all Key Company Metrics for Travelers here>>>Shares of Travelers have returned +0.2% over the past month versus the Zacks S&P 500 composite's +6.2% 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.