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American Financial (AFG) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
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American Financial Group (AFG - Free Report) reported $1.79 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 11.3%. EPS of $2.89 for the same period compares to $3.56 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.71 billion, representing a surprise of +4.55%. The company delivered an EPS surprise of +0.35%, with the consensus EPS estimate being $2.88.
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 American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Property and Transportation - Loss and LAE Ratio: 60.9% versus the three-analyst average estimate of 59.38%.
Property and Transportation - Underwriting Expense Ratio: 30.1% versus the three-analyst average estimate of 28.55%.
Specialty Casualty - Loss and LAE Ratio: 59.2% versus 56.62% estimated by three analysts on average.
Specialty Casualty - Underwriting Expense Ratio: 28.3% versus 27.32% estimated by three analysts on average.
Specialty Financial - Loss and LAE Ratio: 36% compared to the 32.3% average estimate based on three analysts.
Specialty Financial - Combined Ratio: 86.5% compared to the 84.02% average estimate based on three analysts.
Property and Casualty - Underwriting Expense Ratio: 32.2% versus the three-analyst average estimate of 31.42%.
Property and Transportation- Net earned premiumc`: $475 million versus the three-analyst average estimate of $607.28 million. The reported number represents a year-over-year change of -5.2%.
Specialty Casualty- Net earned premium: $704 million versus $696.63 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.
Revenues- P&C insurance net earned premiums: $1.44 billion versus $1.54 billion estimated by three analysts on average.
Revenues- Net investment income: $217 million versus $155.11 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +371.7% change.
Specialty Financial- Net earned premium: $196 million versus the three-analyst average estimate of $176.66 million. The reported number represents a year-over-year change of +23.3%.
Shares of American Financial have returned +0.7% over the past month versus the Zacks S&P 500 composite's +1.5% 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: How Key Metrics Compare to Wall Street Estimates
American Financial Group (AFG - Free Report) reported $1.79 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 11.3%. EPS of $2.89 for the same period compares to $3.56 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.71 billion, representing a surprise of +4.55%. The company delivered an EPS surprise of +0.35%, with the consensus EPS estimate being $2.88.
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 American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Property and Transportation - Loss and LAE Ratio: 60.9% versus the three-analyst average estimate of 59.38%.
- Property and Transportation - Underwriting Expense Ratio: 30.1% versus the three-analyst average estimate of 28.55%.
- Specialty Casualty - Loss and LAE Ratio: 59.2% versus 56.62% estimated by three analysts on average.
- Specialty Casualty - Underwriting Expense Ratio: 28.3% versus 27.32% estimated by three analysts on average.
- Specialty Financial - Loss and LAE Ratio: 36% compared to the 32.3% average estimate based on three analysts.
- Specialty Financial - Combined Ratio: 86.5% compared to the 84.02% average estimate based on three analysts.
- Property and Casualty - Underwriting Expense Ratio: 32.2% versus the three-analyst average estimate of 31.42%.
- Property and Transportation- Net earned premiumc`: $475 million versus the three-analyst average estimate of $607.28 million. The reported number represents a year-over-year change of -5.2%.
- Specialty Casualty- Net earned premium: $704 million versus $696.63 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.
- Revenues- P&C insurance net earned premiums: $1.44 billion versus $1.54 billion estimated by three analysts on average.
- Revenues- Net investment income: $217 million versus $155.11 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +371.7% change.
- Specialty Financial- Net earned premium: $196 million versus the three-analyst average estimate of $176.66 million. The reported number represents a year-over-year change of +23.3%.
View all Key Company Metrics for American Financial here>>>Shares of American Financial have returned +0.7% over the past month versus the Zacks S&P 500 composite's +1.5% 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.