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Travelers (TRV) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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Travelers (TRV - Free Report) reported $10.13 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 9.8%. EPS of $0.06 for the same period compares to $2.57 a year ago.
The reported revenue represents a surprise of +0.28% over the Zacks Consensus Estimate of $10.11 billion. With the consensus EPS estimate being $2.27, the EPS surprise was -97.36%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 77.9% versus 69.55% estimated by six analysts on average.
Underwriting Expense Ratio - Consolidated: 28.6% compared to the 28.53% average estimate based on six analysts.
Combined Ratio - Consolidated: 106.5% compared to the 98.1% average estimate based on six analysts.
Loss and loss adjustment expense ratio - Business Insurance: 70% versus the four-analyst average estimate of 65.58%.
Total Revenues- Fee income: $106 million versus the six-analyst average estimate of $104.43 million. The reported number represents a year-over-year change of +6%.
Total Revenues- Premiums: $9.22 billion compared to the $9.26 billion average estimate based on six analysts. The reported number represents a change of +10.8% year over year.
Total Revenues- Other Revenues: $99 million versus the six-analyst average estimate of $90.84 million. The reported number represents a year-over-year change of -7.5%.
Total Revenues- Net investment income: $712 million versus $669.06 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +0.7% change.
Total Revenues- Bond & Specialty Insurance: $996 million versus $1.01 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
Revenues- Other revenues- Bond & Specialty Insurance: $7 million versus the four-analyst average estimate of $6.64 million. The reported number represents a year-over-year change of +75%.
Revenues- Premiums- Bond & Specialty Insurance: $911 million versus $935.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.
Revenues- Net investment income- Bond & Specialty Insurance: $78 million versus the four-analyst average estimate of $72.70 million. The reported number represents a year-over-year change of +21.9%.
Shares of Travelers have returned -2.7% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Travelers (TRV) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Travelers (TRV - Free Report) reported $10.13 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 9.8%. EPS of $0.06 for the same period compares to $2.57 a year ago.
The reported revenue represents a surprise of +0.28% over the Zacks Consensus Estimate of $10.11 billion. With the consensus EPS estimate being $2.27, the EPS surprise was -97.36%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 77.9% versus 69.55% estimated by six analysts on average.
- Underwriting Expense Ratio - Consolidated: 28.6% compared to the 28.53% average estimate based on six analysts.
- Combined Ratio - Consolidated: 106.5% compared to the 98.1% average estimate based on six analysts.
- Loss and loss adjustment expense ratio - Business Insurance: 70% versus the four-analyst average estimate of 65.58%.
- Total Revenues- Fee income: $106 million versus the six-analyst average estimate of $104.43 million. The reported number represents a year-over-year change of +6%.
- Total Revenues- Premiums: $9.22 billion compared to the $9.26 billion average estimate based on six analysts. The reported number represents a change of +10.8% year over year.
- Total Revenues- Other Revenues: $99 million versus the six-analyst average estimate of $90.84 million. The reported number represents a year-over-year change of -7.5%.
- Total Revenues- Net investment income: $712 million versus $669.06 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +0.7% change.
- Total Revenues- Bond & Specialty Insurance: $996 million versus $1.01 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
- Revenues- Other revenues- Bond & Specialty Insurance: $7 million versus the four-analyst average estimate of $6.64 million. The reported number represents a year-over-year change of +75%.
- Revenues- Premiums- Bond & Specialty Insurance: $911 million versus $935.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.
- Revenues- Net investment income- Bond & Specialty Insurance: $78 million versus the four-analyst average estimate of $72.70 million. The reported number represents a year-over-year change of +21.9%.
View all Key Company Metrics for Travelers here>>>Shares of Travelers have returned -2.7% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.