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Unveiling American Financial (AFG) Q4 Outlook: Wall Street Estimates for Key Metrics

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Analysts on Wall Street project that American Financial Group (AFG - Free Report) will announce quarterly earnings of $2.81 per share in its forthcoming report, representing a decline of 6% year over year. Revenues are projected to reach $1.87 billion, declining 1.8% from the same quarter last year.

Over the last 30 days, there has been a downward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

In light of this perspective, let's dive into the average estimates of certain American Financial metrics that are commonly tracked and forecasted by Wall Street analysts.

Based on the collective assessment of analysts, 'Revenues- P&C insurance net earned premiums' should arrive at $1.68 billion. The estimate points to a change of +3.2% from the year-ago quarter.

Analysts' assessment points toward 'Revenues- Net investment income' reaching $186.97 million. The estimate points to a change of +11.3% from the year-ago quarter.

According to the collective judgment of analysts, 'Specialty Casualty- Net earned premium' should come in at $739.54 million. The estimate indicates a year-over-year change of +7.8%.

The consensus estimate for 'Property and Transportation- Net earned premiumc`' stands at $640.34 million. The estimate points to a change of -6.1% from the year-ago quarter.

The average prediction of analysts places 'Property and Transportation - Loss and LAE Ratio' at 72.4%. Compared to the present estimate, the company reported 71.8% in the same quarter last year.

Analysts expect 'Specialty Financial - Combined Ratio' to come in at 88.5%. The estimate compares to the year-ago value of 83.1%.

The combined assessment of analysts suggests that 'Specialty Casualty - Loss and LAE Ratio' will likely reach 59.2%. The estimate compares to the year-ago value of 55.4%.

Analysts forecast 'Specialty Casualty - Underwriting Expense Ratio' to reach 26.4%. The estimate compares to the year-ago value of 25.9%.

Analysts predict that the 'Specialty Financial - Loss and LAE Ratio' will reach 38.2%. Compared to the current estimate, the company reported 33.8% in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Specialty Financial - Underwriting Expense Ratio' of 50.3%. The estimate is in contrast to the year-ago figure of 49.3%.

The consensus among analysts is that 'Property and Transportation - Underwriting Expense Ratio' will reach 18.5%. Compared to the present estimate, the company reported 18.2% in the same quarter last year.

It is projected by analysts that the 'Specialty Casualty - Combined Ratio' will reach 85.6%. Compared to the present estimate, the company reported 81.3% in the same quarter last year.

View all Key Company Metrics for American Financial here>>>

Shares of American Financial have experienced a change of -2.3% in the past month compared to the +4.6% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), AFG is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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