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EverQuote, Inc. (EVER - Free Report) incurred a loss of 40 cents per share in third-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 72 cents. However, the loss was wider than the year-ago quarter’s loss of 20 cents per share.
Total revenues of $55 million beat the Zacks Consensus Estimate by 5.3%. The top line declined 46.7% year over year, primarily attributable to weak performance in both Automotive and Other insurance verticals.
Given the prolonged auto insurance downturn, the Automotive insurance vertical’s revenues witnessed a year-over-year decline. However, a streamlined cost structure provided respite.
Revenues from the Automotive insurance vertical were $43.1 million, down 51% year over year. The Zacks Consensus Estimate was pegged at $39.1 million. Our estimate was $38 million.
Revenues in the Home and Renters insurance vertical totaled $10.9 million, which increased 51% year over year. The Zacks Consensus Estimate was pegged at $12.9 million.
Revenues in the Other insurance vertical totaled $1 million, which plunged 86.7% year over year.
Total costs and operating expenses decreased 23.1% to $84.4 million, mainly due to lower sales and marketing, general and administrative and research and development. Our estimate was $71.2 million.
EverQuote’s variable marketing margin decreased 39.2% year over year in the quarter under review to $19.4 million. Our estimate was $16.2 million.
Adjusted EBITDA was negative $1.9 million versus $2 million earned in the year-ago quarter. Our estimate was negative $5.7 million.
Financial Update
EverQuote exited the third quarter with cash and cash equivalents of $39 million, up from $30.8 million at 2022-end. Total assets were $114 million, down from $156.5 million at 2022-end. Total stockholders' equity decreased 23.8% to $81.9 million.
Cash used in operations was $2 million in the first nine months of 2023 versus an outflow of $10.9 million in the year-ago period.
Q4 Guidance
EverQuote estimates revenues of $47-$52 million, a variable marketing margin of $16.5-$18.5 million and adjusted EBITDA of ($2.5)- ($4.5) million.
The Travelers Companies (TRV - Free Report) reported third-quarter 2023 core income of $1.95 per share, which missed the Zacks Consensus Estimate by 33.4%. The bottom line decreased 11.4% year over year, primarily attributable to higher catastrophe losses and net unfavorable prior-year reserve development. Travelers’ total revenues increased 14% from the year-ago quarter to $10.6 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 1.3%.
Net written premiums increased 14% year over year to a record $10.4 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.4 billion. Travelers witnessed an underwriting gain of $868 million, up 43% year over year, driven by record net earned premiums of $9.7 billion and a consolidated underlying combined ratio, which improved by 90.6%.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2023 earnings per share of $2.09 beat the Zacks Consensus Estimate of $1.71. The bottom line improved more than fourfold year over year. Net premiums written were $15.6 billion in the quarter, which grew 20% from $13 billion a year ago and beat our estimate of $14.2 billion.
Net premiums earned grew 20% to $14.9 billion, beating our estimate of $13.6 billion and the Zacks Consensus Estimate of $14.8 billion. Net realized losses on securities were $149 million, narrower than a loss of $216.4 million in the year-ago quarter. The combined ratio — the percentage of premiums paid out as claims and expenses — improved 680 bps from the prior-year quarter’s level to 92.4.
RLI Corp. (RLI - Free Report) reported third-quarter 2023 operating earnings of 61 cents per share, beating the Zacks Consensus Estimate by 510%. The bottom line improved 22% from the prior-year quarter. Operating revenues for the reported quarter were $350.4 million, up 12.1% year over year, driven by 9.2% higher net premiums earned and 50.3% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 7.2%.
Gross premiums written increased 11.3% year over year to $449.3 million. Underwriting income of $4.2 million decreased 52.3%, primarily due to Hawaiian wildfire losses. The combined ratio deteriorated 170 basis points year over year to 98.7. Our estimate was 90.8.
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EverQuote (EVER) Q3 Earnings & Revenues Surpass Estimates
EverQuote, Inc. (EVER - Free Report) incurred a loss of 40 cents per share in third-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 72 cents. However, the loss was wider than the year-ago quarter’s loss of 20 cents per share.
Total revenues of $55 million beat the Zacks Consensus Estimate by 5.3%. The top line declined 46.7% year over year, primarily attributable to weak performance in both Automotive and Other insurance verticals.
Given the prolonged auto insurance downturn, the Automotive insurance vertical’s revenues witnessed a year-over-year decline. However, a streamlined cost structure provided respite.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Revenues from the Automotive insurance vertical were $43.1 million, down 51% year over year. The Zacks Consensus Estimate was pegged at $39.1 million. Our estimate was $38 million.
Revenues in the Home and Renters insurance vertical totaled $10.9 million, which increased 51% year over year. The Zacks Consensus Estimate was pegged at $12.9 million.
Revenues in the Other insurance vertical totaled $1 million, which plunged 86.7% year over year.
Total costs and operating expenses decreased 23.1% to $84.4 million, mainly due to lower sales and marketing, general and administrative and research and development. Our estimate was $71.2 million.
EverQuote’s variable marketing margin decreased 39.2% year over year in the quarter under review to $19.4 million. Our estimate was $16.2 million.
Adjusted EBITDA was negative $1.9 million versus $2 million earned in the year-ago quarter. Our estimate was negative $5.7 million.
Financial Update
EverQuote exited the third quarter with cash and cash equivalents of $39 million, up from $30.8 million at 2022-end. Total assets were $114 million, down from $156.5 million at 2022-end. Total stockholders' equity decreased 23.8% to $81.9 million.
Cash used in operations was $2 million in the first nine months of 2023 versus an outflow of $10.9 million in the year-ago period.
Q4 Guidance
EverQuote estimates revenues of $47-$52 million, a variable marketing margin of $16.5-$18.5 million and adjusted EBITDA of ($2.5)- ($4.5) million.
Zacks Rank
EverQuote currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported third-quarter 2023 core income of $1.95 per share, which missed the Zacks Consensus Estimate by 33.4%. The bottom line decreased 11.4% year over year, primarily attributable to higher catastrophe losses and net unfavorable prior-year reserve development. Travelers’ total revenues increased 14% from the year-ago quarter to $10.6 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 1.3%.
Net written premiums increased 14% year over year to a record $10.4 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.4 billion. Travelers witnessed an underwriting gain of $868 million, up 43% year over year, driven by record net earned premiums of $9.7 billion and a consolidated underlying combined ratio, which improved by 90.6%.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2023 earnings per share of $2.09 beat the Zacks Consensus Estimate of $1.71. The bottom line improved more than fourfold year over year. Net premiums written were $15.6 billion in the quarter, which grew 20% from $13 billion a year ago and beat our estimate of $14.2 billion.
Net premiums earned grew 20% to $14.9 billion, beating our estimate of $13.6 billion and the Zacks Consensus Estimate of $14.8 billion. Net realized losses on securities were $149 million, narrower than a loss of $216.4 million in the year-ago quarter. The combined ratio — the percentage of premiums paid out as claims and expenses — improved 680 bps from the prior-year quarter’s level to 92.4.
RLI Corp. (RLI - Free Report) reported third-quarter 2023 operating earnings of 61 cents per share, beating the Zacks Consensus Estimate by 510%. The bottom line improved 22% from the prior-year quarter. Operating revenues for the reported quarter were $350.4 million, up 12.1% year over year, driven by 9.2% higher net premiums earned and 50.3% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 7.2%.
Gross premiums written increased 11.3% year over year to $449.3 million. Underwriting income of $4.2 million decreased 52.3%, primarily due to Hawaiian wildfire losses. The combined ratio deteriorated 170 basis points year over year to 98.7. Our estimate was 90.8.