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Compared to Estimates, RLI Corp. (RLI) Q1 Earnings: A Look at Key Metrics
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For the quarter ended March 2024, RLI Corp. (RLI - Free Report) reported revenue of $393.52 million, up 17.5% over the same period last year. EPS came in at $1.89, compared to $1.63 in the year-ago quarter.
The reported revenue represents a surprise of -0.08% over the Zacks Consensus Estimate of $393.84 million. With the consensus EPS estimate being $1.63, the EPS surprise was +15.95%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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 RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Expense Ratio- Total: 38.6% versus the four-analyst average estimate of 40%.
Loss Ratio- Total: 39.9% compared to the 41.4% average estimate based on four analysts.
Combined Ratio (Underwriting income ratio) - Total: 78.5% compared to the 81.3% average estimate based on four analysts.
Combined Ratio - Surety: 80.9% versus 78.4% estimated by three analysts on average.
Combined Ratio - Property: 55.4% versus the three-analyst average estimate of 67.1%.
Combined Ratio - Casualty: 93.1% versus the three-analyst average estimate of 91.1%.
Net premiums earned: $360.68 million versus the four-analyst average estimate of $358.75 million. The reported number represents a year-over-year change of +17.2%.
Net investment income: $32.85 million versus $35.10 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +21.3% change.
Net premiums earned- Surety segment: $32.99 million versus $35.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change.
Net premiums earned- Casualty segment: $198.28 million compared to the $198.65 million average estimate based on two analysts. The reported number represents a change of +6.6% year over year.
Net premiums earned- Property segment: $129.41 million compared to the $125.16 million average estimate based on two analysts. The reported number represents a change of +45.8% year over year.
Net unrealized losses on equity securities: $45.31 million versus -$15.44 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +192.4% change.
Shares of RLI Corp. have returned -4.2% over the past month versus the Zacks S&P 500 composite's -4% 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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Compared to Estimates, RLI Corp. (RLI) Q1 Earnings: A Look at Key Metrics
For the quarter ended March 2024, RLI Corp. (RLI - Free Report) reported revenue of $393.52 million, up 17.5% over the same period last year. EPS came in at $1.89, compared to $1.63 in the year-ago quarter.
The reported revenue represents a surprise of -0.08% over the Zacks Consensus Estimate of $393.84 million. With the consensus EPS estimate being $1.63, the EPS surprise was +15.95%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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 RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Expense Ratio- Total: 38.6% versus the four-analyst average estimate of 40%.
- Loss Ratio- Total: 39.9% compared to the 41.4% average estimate based on four analysts.
- Combined Ratio (Underwriting income ratio) - Total: 78.5% compared to the 81.3% average estimate based on four analysts.
- Combined Ratio - Surety: 80.9% versus 78.4% estimated by three analysts on average.
- Combined Ratio - Property: 55.4% versus the three-analyst average estimate of 67.1%.
- Combined Ratio - Casualty: 93.1% versus the three-analyst average estimate of 91.1%.
- Net premiums earned: $360.68 million versus the four-analyst average estimate of $358.75 million. The reported number represents a year-over-year change of +17.2%.
- Net investment income: $32.85 million versus $35.10 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +21.3% change.
- Net premiums earned- Surety segment: $32.99 million versus $35.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change.
- Net premiums earned- Casualty segment: $198.28 million compared to the $198.65 million average estimate based on two analysts. The reported number represents a change of +6.6% year over year.
- Net premiums earned- Property segment: $129.41 million compared to the $125.16 million average estimate based on two analysts. The reported number represents a change of +45.8% year over year.
- Net unrealized losses on equity securities: $45.31 million versus -$15.44 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +192.4% change.
View all Key Company Metrics for RLI Corp. here>>>Shares of RLI Corp. have returned -4.2% over the past month versus the Zacks S&P 500 composite's -4% 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.