Back to top

Image: Bigstock

Countdown to RLI Corp. (RLI) Q1 Earnings: A Look at Estimates Beyond Revenue and EPS

Read MoreHide Full Article

Wall Street analysts expect RLI Corp. (RLI - Free Report) to post quarterly earnings of $1.63 per share in its upcoming report, which indicates no change from the year-ago quarter. Revenues are expected to be $393.84 million, up 17.6% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

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.

Given this perspective, it's time to examine the average forecasts of specific RLI Corp. metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts forecast 'Net premiums earned' to reach $358.75 million. The estimate indicates a change of +16.6% from the prior-year quarter.

According to the collective judgment of analysts, 'Net investment income' should come in at $35.10 million. The estimate points to a change of +29.6% from the year-ago quarter.

Analysts' assessment points toward 'Net premiums earned- Surety segment' reaching $35.26 million. The estimate points to a change of +7.1% from the year-ago quarter.

The average prediction of analysts places 'Net premiums earned- Casualty segment' at $198.65 million. The estimate indicates a change of +6.8% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Net premiums earned- Property segment' of $125.16 million. The estimate indicates a change of +41% from the prior-year quarter.

It is projected by analysts that the 'Net unrealized losses on equity securities' will reach -$15.44 million. The estimate points to a change of -199.6% from the year-ago quarter.

Based on the collective assessment of analysts, 'Expense Ratio- Total' should arrive at 40.0%. The estimate compares to the year-ago value of 40.7%.

Analysts predict that the 'Loss Ratio- Total' will reach 41.4%. The estimate is in contrast to the year-ago figure of 37.2%.

The combined assessment of analysts suggests that 'Combined Ratio (Underwriting income ratio) - Total' will likely reach 81.3%. Compared to the current estimate, the company reported 77.9% in the same quarter of the previous year.

View all Key Company Metrics for RLI Corp. here>>>

Over the past month, RLI Corp. shares have recorded returns of -5.4% versus the Zacks S&P 500 composite's -1.1% change. Based on its Zacks Rank #3 (Hold), RLI will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


RLI Corp. (RLI) - free report >>

Published in