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Erie Indemnity Set to Report Q3 Earnings: What to Expect

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Erie Indemnity Company (ERIE - Free Report) is slated to report third-quarter 2024 earnings on Oct. 31, after market close. EG's earnings beat estimates in three of the trailing four quarters while missing in one.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors to Consider

Both the personal and commercial lines are likely to have witnessed new policy growth, with improved pricing and solid customer retention driving growth. This, in turn, is likely to have fueled management fee revenue growth. The Zacks Consensus Estimate is pegged at $773 million for management fee revenues.

Revenues from administrative services are likely to have increased, driven by a rise in both administrative services reimbursement revenues as well as management fee revenues. The Zacks Consensus Estimate is pegged at $16.5 million for management fee revenues, while the same is pegged at $189 million for administrative services reimbursement revenues.

Total investment income is likely to have improved owing to an increase in net investment income, which, in turn, is likely to have driven yields.  

The Zacks Consensus Estimate for revenues is pegged at $985 billion, indicating a rise of 14.7% from the year-ago reported figure.

The cost of operations for policy issuance and renewal services is likely to have increased owing to higher scheduled commissions, which are driven by direct and affiliated assumed written premium growth, as well as increased agent incentive compensation and survey and underwriting report costs.

Operating income is likely to have improved owing to higher management fee revenues resulting from the exchange's significant direct written premium growth.

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.99, indicating a decrease of 19.1% from the year-ago quarter reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for ERIE this time around. This is because the stock does not have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. 

Earnings ESP: ERIE has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.99. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
 

Erie Indemnity Company Price and EPS Surprise

Erie Indemnity Company Price and EPS Surprise

Erie Indemnity Company price-eps-surprise | Erie Indemnity Company Quote

Zacks Rank: ERIE Group currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

American Financial Group (AFG - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.51, indicating a year-over-year increase of 2.5%. 

AFG’s earnings beat estimates in two of the last four reported quarters while missing in the other two.

Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.41, indicating a year-over-year increase of 14.6%.

FNF’s earnings beat estimates in one of the last four reported quarters while missing in the other three. 

RenaissanceRe (RNR - Free Report) has an Earnings ESP of +7.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $7.89, indicating a year-over-year decrease of 5.3%.

RNR’s earnings beat estimates in each of the last four reported quarters.

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