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Arch Capital (ACGL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2023, Arch Capital Group (ACGL - Free Report) reported revenue of $3.21 billion, up 32.6% over the same period last year. EPS came in at $1.92, compared to $1.34 in the year-ago quarter.
The reported revenue represents a surprise of +2.25% over the Zacks Consensus Estimate of $3.14 billion. With the consensus EPS estimate being $1.65, the EPS surprise was +16.36%.
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.
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 Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Combined Ratio - Total: 79.8% compared to the 79.91% average estimate based on three analysts.
Loss Ratio - Total: 50.3% versus 51.54% estimated by three analysts on average.
Expense Ratio - Other Operating Expense Ratio: 10.6% versus the two-analyst average estimate of 10.54%.
Combined Ratio - Insurance Segment: 91.9% compared to the 89.96% average estimate based on two analysts.
Loss Ratio - Insurance Segment: 57.3% compared to the 56.91% average estimate based on two analysts.
Underwriting Expense Ratio - Acquisition Expense Ratio - Insurance Segment: 19.9% compared to the 19.05% average estimate based on two analysts.
Revenues- Net premiums earned: $2.97 billion versus the three-analyst average estimate of $2.92 billion. The reported number represents a year-over-year change of +27.5%.
Revenues- Net investment income: $242 million versus the three-analyst average estimate of $184.55 million. The reported number represents a year-over-year change of +127.5%.
Revenues- Net premiums earned- Reinsurance Segment: $1.34 billion versus the two-analyst average estimate of $1.29 billion.
Revenues- Net premiums earned- Insurance Segment: $1.33 billion versus $1.25 billion estimated by two analysts on average.
Revenues- Net premiums earned- Mortgage Segment: $294 million versus $297.14 million estimated by two analysts on average.
Revenues- Other income (loss): $3 million versus the two-analyst average estimate of $9.50 million.
Shares of Arch Capital have returned +14.4% over the past month versus the Zacks S&P 500 composite's +5.1% 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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Arch Capital (ACGL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, Arch Capital Group (ACGL - Free Report) reported revenue of $3.21 billion, up 32.6% over the same period last year. EPS came in at $1.92, compared to $1.34 in the year-ago quarter.
The reported revenue represents a surprise of +2.25% over the Zacks Consensus Estimate of $3.14 billion. With the consensus EPS estimate being $1.65, the EPS surprise was +16.36%.
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.
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 Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Combined Ratio - Total: 79.8% compared to the 79.91% average estimate based on three analysts.
- Loss Ratio - Total: 50.3% versus 51.54% estimated by three analysts on average.
- Expense Ratio - Other Operating Expense Ratio: 10.6% versus the two-analyst average estimate of 10.54%.
- Combined Ratio - Insurance Segment: 91.9% compared to the 89.96% average estimate based on two analysts.
- Loss Ratio - Insurance Segment: 57.3% compared to the 56.91% average estimate based on two analysts.
- Underwriting Expense Ratio - Acquisition Expense Ratio - Insurance Segment: 19.9% compared to the 19.05% average estimate based on two analysts.
- Revenues- Net premiums earned: $2.97 billion versus the three-analyst average estimate of $2.92 billion. The reported number represents a year-over-year change of +27.5%.
- Revenues- Net investment income: $242 million versus the three-analyst average estimate of $184.55 million. The reported number represents a year-over-year change of +127.5%.
- Revenues- Net premiums earned- Reinsurance Segment: $1.34 billion versus the two-analyst average estimate of $1.29 billion.
- Revenues- Net premiums earned- Insurance Segment: $1.33 billion versus $1.25 billion estimated by two analysts on average.
- Revenues- Net premiums earned- Mortgage Segment: $294 million versus $297.14 million estimated by two analysts on average.
- Revenues- Other income (loss): $3 million versus the two-analyst average estimate of $9.50 million.
View all Key Company Metrics for Arch Capital here>>>Shares of Arch Capital have returned +14.4% over the past month versus the Zacks S&P 500 composite's +5.1% 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.