Arch Capital (ACGL) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Arch Capital Group (ACGL) reported revenue of $3.51 billion, up 35.9% over the same period last year. EPS came in at $2.31, compared to $0.28 in the year-ago quarter.
The reported revenue represents a surprise of +1.46% over the Zacks Consensus Estimate of $3.46 billion. With the consensus EPS estimate being $1.54, the EPS surprise was +50.00%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Loss Ratio - Total: 50.7% versus 57.4% estimated by five analysts on average.
Combined Ratio - Total: 77.9% versus the five-analyst average estimate of 86.6%.
Underwriting Expense Ratio - Acquisition Expense Ratio - Mortgage Segment: 0.6% compared to the 3.2% average estimate based on four analysts.
Loss Ratio - Insurance Segment: 57.5% compared to the 63.2% average estimate based on four analysts.
Loss Ratio - Mortgage Segment: -12.1% versus the four-analyst average estimate of 8.2%.
Revenues- Net investment income: $269 million versus $260.55 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +109.1% change.
Revenues- Net premiums earned: $3.25 billion compared to the $3.11 billion average estimate based on five analysts. The reported number represents a change of +31.5% year over year.
Revenues- Net premiums earned- Insurance Segment: $1.41 billion versus the four-analyst average estimate of $1.37 billion.
Revenues- Net premiums earned- Reinsurance Segment: $1.54 billion versus $1.43 billion estimated by four analysts on average.
Revenues- Net premiums earned- Mortgage Segment: $293 million compared to the $284.04 million average estimate based on four analysts.
Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $59 million versus the three-analyst average estimate of $24.79 million. The reported number represents a year-over-year change of -412.8%.
Revenues- Other income (loss): -$4 million versus the three-analyst average estimate of $3 million.
View all Key Company Metrics for Arch Capital here>>>
Shares of Arch Capital have returned +2.1% over the past month versus the Zacks S&P 500 composite's -3.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
