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Hanover Insurance (THG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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Hanover Insurance Group (THG - Free Report) reported $1.58 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 3.6%. EPS of $3.05 for the same period compares to $0.19 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.59 billion, representing a surprise of -0.76%. The company delivered an EPS surprise of +15.09%, with the consensus EPS estimate being $2.65.
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 Hanover Insurance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
GAAP Expense Ratio: 30.2% compared to the 30.7% average estimate based on three analysts.
GAAP Loss and LAE Ratio: 74.2% compared to the 66.6% average estimate based on three analysts.
GAAP Combined Ratio: 104.4% versus the three-analyst average estimate of 97.3%.
Core Commercial - Expense Ratio: 33.3% versus the two-analyst average estimate of 33.5%.
Revenues- Premiums earned: $1.48 billion compared to the $1.49 billion average estimate based on three analysts. The reported number represents a change of +3.4% year over year.
Revenues- Net investment income: $91.80 million versus the three-analyst average estimate of $92.17 million. The reported number represents a year-over-year change of +9%.
Core Commercial- Net Investment Income: $38.40 million versus $41.68 million estimated by two analysts on average.
Personal Lines- Other income: $3.90 million versus the two-analyst average estimate of $4.03 million.
Specialty- Net Investment Income: $20.90 million compared to the $20.06 million average estimate based on two analysts.
Personal Lines- Net Premiums Earned: $614.70 million versus $613.78 million estimated by two analysts on average.
Revenues- Fees and other income: $6.70 million versus the two-analyst average estimate of $7.87 million. The reported number represents a year-over-year change of -9.5%.
Core Commercial- Net Premiums Earned: $517.40 million versus the two-analyst average estimate of $535.39 million.
Shares of Hanover Insurance have returned -0.3% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Hanover Insurance (THG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Hanover Insurance Group (THG - Free Report) reported $1.58 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 3.6%. EPS of $3.05 for the same period compares to $0.19 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.59 billion, representing a surprise of -0.76%. The company delivered an EPS surprise of +15.09%, with the consensus EPS estimate being $2.65.
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 Hanover Insurance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- GAAP Expense Ratio: 30.2% compared to the 30.7% average estimate based on three analysts.
- GAAP Loss and LAE Ratio: 74.2% compared to the 66.6% average estimate based on three analysts.
- GAAP Combined Ratio: 104.4% versus the three-analyst average estimate of 97.3%.
- Core Commercial - Expense Ratio: 33.3% versus the two-analyst average estimate of 33.5%.
- Revenues- Premiums earned: $1.48 billion compared to the $1.49 billion average estimate based on three analysts. The reported number represents a change of +3.4% year over year.
- Revenues- Net investment income: $91.80 million versus the three-analyst average estimate of $92.17 million. The reported number represents a year-over-year change of +9%.
- Core Commercial- Net Investment Income: $38.40 million versus $41.68 million estimated by two analysts on average.
- Personal Lines- Other income: $3.90 million versus the two-analyst average estimate of $4.03 million.
- Specialty- Net Investment Income: $20.90 million compared to the $20.06 million average estimate based on two analysts.
- Personal Lines- Net Premiums Earned: $614.70 million versus $613.78 million estimated by two analysts on average.
- Revenues- Fees and other income: $6.70 million versus the two-analyst average estimate of $7.87 million. The reported number represents a year-over-year change of -9.5%.
- Core Commercial- Net Premiums Earned: $517.40 million versus the two-analyst average estimate of $535.39 million.
View all Key Company Metrics for Hanover Insurance here>>>Shares of Hanover Insurance have returned -0.3% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.