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Arch Capital (ACGL) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended December 2023, Arch Capital Group (ACGL - Free Report) reported revenue of $3.67 billion, up 24.5% over the same period last year. EPS came in at $2.49, compared to $2.14 in the year-ago quarter.
The reported revenue represents a surprise of +0.16% over the Zacks Consensus Estimate of $3.67 billion. With the consensus EPS estimate being $1.94, the EPS surprise was +28.35%.
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 - Insurance Segment: 93.1% versus 92.6% estimated by five analysts on average.
Loss Ratio - Reinsurance Segment: 52.3% versus 56.6% estimated by five analysts on average.
Combined Ratio - Reinsurance Segment: 80% versus the five-analyst average estimate of 82.9%.
Combined Ratio - Total: 78.9% compared to the 82% average estimate based on five analysts.
Revenues- Net investment income: $313 million versus $287.17 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +72.9% change.
Revenues- Net premiums earned: $3.34 billion versus the five-analyst average estimate of $3.38 billion. The reported number represents a year-over-year change of +21.1%.
Revenues- Net premiums earned- Insurance Segment: $1.45 billion compared to the $1.38 billion average estimate based on four analysts. The reported number represents a change of +16.5% year over year.
Revenues- Net premiums earned- Reinsurance Segment: $1.62 billion versus $1.73 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +32.2% change.
Revenues- Net premiums earned- Mortgage Segment: $275 million versus the four-analyst average estimate of $278.38 million. The reported number represents a year-over-year change of -5.9%.
Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $102 million compared to the $51.63 million average estimate based on three analysts. The reported number represents a change of +152.8% year over year.
Revenues- Other income (loss): $17 million compared to the $1.67 million average estimate based on three analysts.
Revenues- Other underwriting income (loss): $10 million compared to the $4.07 million average estimate based on two analysts. The reported number represents a change of +679.4% year over year.
Shares of Arch Capital have returned +7.5% over the past month versus the Zacks S&P 500 composite's +3.7% 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) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended December 2023, Arch Capital Group (ACGL - Free Report) reported revenue of $3.67 billion, up 24.5% over the same period last year. EPS came in at $2.49, compared to $2.14 in the year-ago quarter.
The reported revenue represents a surprise of +0.16% over the Zacks Consensus Estimate of $3.67 billion. With the consensus EPS estimate being $1.94, the EPS surprise was +28.35%.
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 - Insurance Segment: 93.1% versus 92.6% estimated by five analysts on average.
- Loss Ratio - Reinsurance Segment: 52.3% versus 56.6% estimated by five analysts on average.
- Combined Ratio - Reinsurance Segment: 80% versus the five-analyst average estimate of 82.9%.
- Combined Ratio - Total: 78.9% compared to the 82% average estimate based on five analysts.
- Revenues- Net investment income: $313 million versus $287.17 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +72.9% change.
- Revenues- Net premiums earned: $3.34 billion versus the five-analyst average estimate of $3.38 billion. The reported number represents a year-over-year change of +21.1%.
- Revenues- Net premiums earned- Insurance Segment: $1.45 billion compared to the $1.38 billion average estimate based on four analysts. The reported number represents a change of +16.5% year over year.
- Revenues- Net premiums earned- Reinsurance Segment: $1.62 billion versus $1.73 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +32.2% change.
- Revenues- Net premiums earned- Mortgage Segment: $275 million versus the four-analyst average estimate of $278.38 million. The reported number represents a year-over-year change of -5.9%.
- Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $102 million compared to the $51.63 million average estimate based on three analysts. The reported number represents a change of +152.8% year over year.
- Revenues- Other income (loss): $17 million compared to the $1.67 million average estimate based on three analysts.
- Revenues- Other underwriting income (loss): $10 million compared to the $4.07 million average estimate based on two analysts. The reported number represents a change of +679.4% year over year.
View all Key Company Metrics for Arch Capital here>>>Shares of Arch Capital have returned +7.5% over the past month versus the Zacks S&P 500 composite's +3.7% 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.