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Arch Capital (ACGL) Reports Q1 Earnings: What Key Metrics Have to Say
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Arch Capital Group (ACGL - Free Report) reported $3.76 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 21.7%. EPS of $2.45 for the same period compares to $1.73 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.77 billion, representing a surprise of -0.24%. The company delivered an EPS surprise of +18.93%, with the consensus EPS estimate being $2.06.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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 - Total: 78.8% versus 82% estimated by five analysts on average.
Combined Ratio - Insurance Segment: 94.1% versus 91.1% estimated by five analysts on average.
Loss Ratio - Reinsurance Segment: 53% versus 55.9% estimated by five analysts on average.
Combined Ratio - Mortgage Segment: 14.5% versus 29.8% estimated by five analysts on average.
Revenues- Net premiums earned: $3.42 billion versus the five-analyst average estimate of $3.45 billion. The reported number represents a year-over-year change of +18.7%.
Revenues- Net investment income: $327 million versus the five-analyst average estimate of $315.76 million. The reported number represents a year-over-year change of +64.3%.
Revenues- Other underwriting income (loss): $12 million compared to the $4.99 million average estimate based on four analysts. The reported number represents a change of +20% year over year.
Revenues- Net premiums earned- Insurance Segment: $1.45 billion versus $1.48 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +15.4% change.
Revenues- Net premiums earned- Reinsurance Segment: $1.67 billion versus $1.72 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +25.3% change.
Revenues- Net premiums earned- Mortgage Segment: $305 million versus the four-analyst average estimate of $269.02 million. The reported number represents a year-over-year change of +3%.
Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $99 million versus $54.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +106.3% change.
Revenues- Other income (loss): $14 million versus $9 million estimated by two analysts on average.
Shares of Arch Capital have returned -1.7% over the past month versus the Zacks S&P 500 composite's -2% 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) Reports Q1 Earnings: What Key Metrics Have to Say
Arch Capital Group (ACGL - Free Report) reported $3.76 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 21.7%. EPS of $2.45 for the same period compares to $1.73 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.77 billion, representing a surprise of -0.24%. The company delivered an EPS surprise of +18.93%, with the consensus EPS estimate being $2.06.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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 - Total: 78.8% versus 82% estimated by five analysts on average.
- Combined Ratio - Insurance Segment: 94.1% versus 91.1% estimated by five analysts on average.
- Loss Ratio - Reinsurance Segment: 53% versus 55.9% estimated by five analysts on average.
- Combined Ratio - Mortgage Segment: 14.5% versus 29.8% estimated by five analysts on average.
- Revenues- Net premiums earned: $3.42 billion versus the five-analyst average estimate of $3.45 billion. The reported number represents a year-over-year change of +18.7%.
- Revenues- Net investment income: $327 million versus the five-analyst average estimate of $315.76 million. The reported number represents a year-over-year change of +64.3%.
- Revenues- Other underwriting income (loss): $12 million compared to the $4.99 million average estimate based on four analysts. The reported number represents a change of +20% year over year.
- Revenues- Net premiums earned- Insurance Segment: $1.45 billion versus $1.48 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +15.4% change.
- Revenues- Net premiums earned- Reinsurance Segment: $1.67 billion versus $1.72 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +25.3% change.
- Revenues- Net premiums earned- Mortgage Segment: $305 million versus the four-analyst average estimate of $269.02 million. The reported number represents a year-over-year change of +3%.
- Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $99 million versus $54.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +106.3% change.
- Revenues- Other income (loss): $14 million versus $9 million estimated by two analysts on average.
View all Key Company Metrics for Arch Capital here>>>Shares of Arch Capital have returned -1.7% over the past month versus the Zacks S&P 500 composite's -2% 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.