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Progressive (PGR) Q2 Earnings Beats Estimates, Premiums Rise

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Have you been eager to see how The Progressive Corporation (PGR - Free Report) performed in the second quarter in comparison with the market expectations? Let’s quickly scan through the key facts from this OH-based property and casualty insurer’s earnings release this morning.

An Earnings Beat

Progressive reported adjusted earnings per share of $1.15 per share, beating the Zacks Consensus Estimate of $1.08. Earnings surged nearly 95% year over year.

Higher premiums drove the upside.

The Progressive Corporation Price and EPS Surprise

How Was the Estimate Revision Trend?

You should note that the Zacks Consensus Estimate for the second quarter moved up in the last seven days for Progressive prior to the earnings release. Progressive has a decent earnings surprise history. Overall, the company surpassed the Zacks Consensus Estimate by an average of 8.27% in the trailing four quarters.

Key Takeaways

Premiums written continue to post solid numbers, increasing 20% year over year to $8.1 billion in the reported quarter.

Combined ratio improved 230 basis points in the quarter.

Policies–in–force remained solid, exhibiting improvement across all business lines.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) for Progressive. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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