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Is a Beat in the Cards for W.R. Berkley's (WRB) Q1 Earnings?
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W. R. Berkley Corporation (WRB - Free Report) is slated to report first-quarter 2020 results on Apr 21, after market close. The company delivered a positive earnings surprise, on average, in the last three quarters.
Let’s see how things shape up for this announcement.
Factors at Play
This property and casualty (P&C) insurer is likely to have benefited from higher premiums derived from its insurance and international businesses in the to-be-reported quarter. Evidently, the Zacks Consensus Estimate for first-quarter 2020 premiums earned is pegged at $1.7 billion, indicating an increase of 9.7% from the year-ago quarter’s reported figure.
Strength in both premiums earned and net investment income is likely to boost W.R. Berkley’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter net investment income stands at $161 million, which implies a rise of 1.9% from the year-ago quarter’s reported figure. However, the investment income might suffer from lower investment yield.
The Zacks Consensus Estimate for first-quarter 2020 revenues is pegged at $1.9 billion, suggesting an improvement of 3.4% from the prior-year quarter’s reported figure.
Better pricing decisions across all business lines are likely to boost its underwriting results in the to-be-reported quarter as well. Share buybacks made by W.R. Berkley are likely to provide an additional boost to its bottom line.
However, expenses are likely to have risen due to higher losses and loss expenses as well as expenses from the non-insurance business.
The Zacks Consensus Estimate for first-quarter 2020 earnings per share is pegged at 71 cents, which calls for a decline of 24.5% from the year-ago quarter’s reported figure.
Our proven model predicts an earnings beat for W.R. Berkley this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: W.R. Berkley has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some other stocks from the insurance space with the right combination of elements to surpass estimates this reporting cycle are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
Cincinnati Financial Corporation (CINF - Free Report) currently has an Earnings ESP of +1.67% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 results on Apr 27.
Selective Insurance Group, Inc. (SIGI - Free Report) presently has an Earnings ESP of +1.37% and a Zacks Rank of 3. The company is set to report first-quarter 2020 results on May 5.
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Is a Beat in the Cards for W.R. Berkley's (WRB) Q1 Earnings?
W. R. Berkley Corporation (WRB - Free Report) is slated to report first-quarter 2020 results on Apr 21, after market close. The company delivered a positive earnings surprise, on average, in the last three quarters.
Let’s see how things shape up for this announcement.
Factors at Play
This property and casualty (P&C) insurer is likely to have benefited from higher premiums derived from its insurance and international businesses in the to-be-reported quarter. Evidently, the Zacks Consensus Estimate for first-quarter 2020 premiums earned is pegged at $1.7 billion, indicating an increase of 9.7% from the year-ago quarter’s reported figure.
Strength in both premiums earned and net investment income is likely to boost W.R. Berkley’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter net investment income stands at $161 million, which implies a rise of 1.9% from the year-ago quarter’s reported figure. However, the investment income might suffer from lower investment yield.
The Zacks Consensus Estimate for first-quarter 2020 revenues is pegged at $1.9 billion, suggesting an improvement of 3.4% from the prior-year quarter’s reported figure.
Better pricing decisions across all business lines are likely to boost its underwriting results in the to-be-reported quarter as well. Share buybacks made by W.R. Berkley are likely to provide an additional boost to its bottom line.
However, expenses are likely to have risen due to higher losses and loss expenses as well as expenses from the non-insurance business.
The Zacks Consensus Estimate for first-quarter 2020 earnings per share is pegged at 71 cents, which calls for a decline of 24.5% from the year-ago quarter’s reported figure.
W.R. Berkley Corporation Price and EPS Surprise
W.R. Berkley Corporation price-eps-surprise | W.R. Berkley Corporation Quote
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for W.R. Berkley this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: W.R. Berkley has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: W.R Berkley carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks from the insurance space with the right combination of elements to surpass estimates this reporting cycle are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
Cincinnati Financial Corporation (CINF - Free Report) currently has an Earnings ESP of +1.67% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 results on Apr 27.
Selective Insurance Group, Inc. (SIGI - Free Report) presently has an Earnings ESP of +1.37% and a Zacks Rank of 3. The company is set to report first-quarter 2020 results on May 5.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>