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Compared to Estimates, Travelers (TRV) Q4 Earnings: A Look at Key Metrics
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Travelers (TRV - Free Report) reported $10.94 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 13.6%. EPS of $7.01 for the same period compares to $3.40 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $10.91 billion, representing a surprise of +0.24%. The company delivered an EPS surprise of +39.09%, with the consensus EPS estimate being $5.04.
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 Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Combined Ratio - Consolidated: 85.8% versus the nine-analyst average estimate of 92.5%.
Underwriting Expense Ratio - Consolidated: 27.4% versus 28% estimated by nine analysts on average.
Loss and loss adjustment expense ratio - Consolidated: 58.4% compared to the 64.6% average estimate based on nine analysts.
Combined Ratio - Bond & Specialty Insurance: 77.3% versus 79.3% estimated by eight analysts on average.
Total Revenues- Premiums: $9.97 billion compared to the $9.93 billion average estimate based on 10 analysts. The reported number represents a change of +13.1% year over year.
Total Revenues- Other Revenues: $78 million versus $89.86 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a -4.9% change.
Total Revenues- Net investment income: $778 million versus the nine-analyst average estimate of $795.58 million. The reported number represents a year-over-year change of +24.5%.
Total Revenues- Fee income: $109 million compared to the $110.63 million average estimate based on nine analysts. The reported number represents a change of +3.8% year over year.
Revenues- Premiums- Business Insurance: $5.07 billion compared to the $5.04 billion average estimate based on seven analysts. The reported number represents a change of +13.8% year over year.
Revenues- Premiums- Personal Insurance: $3.97 billion versus $3.91 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change.
Revenues- Premiums- Bond & Specialty Insurance: $934 million versus the seven-analyst average estimate of $941.62 million. The reported number represents a year-over-year change of +7.4%.
Revenues- Other revenues- Personal Insurance: $15 million versus $24.28 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -31.8% change.
Shares of Travelers have returned +2.8% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Compared to Estimates, Travelers (TRV) Q4 Earnings: A Look at Key Metrics
Travelers (TRV - Free Report) reported $10.94 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 13.6%. EPS of $7.01 for the same period compares to $3.40 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $10.91 billion, representing a surprise of +0.24%. The company delivered an EPS surprise of +39.09%, with the consensus EPS estimate being $5.04.
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 Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Combined Ratio - Consolidated: 85.8% versus the nine-analyst average estimate of 92.5%.
- Underwriting Expense Ratio - Consolidated: 27.4% versus 28% estimated by nine analysts on average.
- Loss and loss adjustment expense ratio - Consolidated: 58.4% compared to the 64.6% average estimate based on nine analysts.
- Combined Ratio - Bond & Specialty Insurance: 77.3% versus 79.3% estimated by eight analysts on average.
- Total Revenues- Premiums: $9.97 billion compared to the $9.93 billion average estimate based on 10 analysts. The reported number represents a change of +13.1% year over year.
- Total Revenues- Other Revenues: $78 million versus $89.86 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a -4.9% change.
- Total Revenues- Net investment income: $778 million versus the nine-analyst average estimate of $795.58 million. The reported number represents a year-over-year change of +24.5%.
- Total Revenues- Fee income: $109 million compared to the $110.63 million average estimate based on nine analysts. The reported number represents a change of +3.8% year over year.
- Revenues- Premiums- Business Insurance: $5.07 billion compared to the $5.04 billion average estimate based on seven analysts. The reported number represents a change of +13.8% year over year.
- Revenues- Premiums- Personal Insurance: $3.97 billion versus $3.91 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change.
- Revenues- Premiums- Bond & Specialty Insurance: $934 million versus the seven-analyst average estimate of $941.62 million. The reported number represents a year-over-year change of +7.4%.
- Revenues- Other revenues- Personal Insurance: $15 million versus $24.28 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -31.8% change.
View all Key Company Metrics for Travelers here>>>Shares of Travelers have returned +2.8% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.