Back to top

Tale of the Tape

Zacks Equity Research

Travelers (TRV) Q1 Earnings Miss, Revenues Beat Estimates
April 20, 2017

TRV

Trades from $3

New York based The Travelers Companies, Inc. (TRV - Free Report) is one of the leading writer of auto and homeowners’ insurance through independent agents as well as writer of commercial U.S. property-casualty insurance.

Travelers’ impressive inorganic growth story bodes well for long-term growth. While its prudent acquisitions help to expand in the attractive and growing market place outside the United States as well, the same bear testimony of its solid capital and liquid position.

Travelers’ focus on reducing operating expenses and acquisition costs in order to improve underwriting margins bodes well for to have more competitively priced product in its portfolio. However, exposure to catastrophe loss always remains a concern as occurrence of any dent underwriting results.

Currently, Travelers has a Zacks Rank #3 (Hold), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We have highlighted some of the key stats from this just-revealed announcement below:

Bottom Line Misses Expectation

Travelers misses earnings. Our consensus called for EPS of $2.40 per share, and the company reported EPS of $2.16 per share. Also, bottomline deteriorated 7.3% year over year.

Revenues Beat

Revenues of $6.9 billion outperformed the Zacks Consensus Estimate of $6.8 billion.

Key Stats to Note

•   Net written premiums of $6.5 billion, up 5.3% year over year.
•   Underwriting gains plummeted 50.7% to $211 million.
•    Combined ratio deteriorated by 370 basis points to 96.0%.
•   Adjusted book value per share improved 6.4% year over year to $81.56 as on Mar 31, 2017.
•    Returned $476 million in capital to shareholders.


Check back later for our full write up on this Travelers earnings report later!

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>





In-Depth Zacks Research for the Tickers Above


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


The Travelers Companies, Inc. (TRV) - free report >>