Hanover Insurance (THG) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
Wall Street analysts forecast that Hanover Insurance Group (THG) will report quarterly earnings of $2.51 per share in its upcoming release, pointing to a year-over-year increase of 339.1%. It is anticipated that revenues will amount to $1.56 billion, exhibiting an increase of 7.9% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Hanover Insurance metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenues- Net investment income' reaching $84.76 million. The estimate indicates a year-over-year change of +11.7%.
Analysts predict that the 'Revenues- Premiums earned' will reach $1.46 billion. The estimate suggests a change of +7.4% year over year.
The collective assessment of analysts points to an estimated 'Revenues- Fees and other income' of $9.17 million. The estimate points to a change of +29.1% from the year-ago quarter.
It is projected by analysts that the 'GAAP Combined Ratio' will reach 97.5%. Compared to the present estimate, the company reported 108% in the same quarter last year.
The average prediction of analysts places 'GAAP Loss and LAE Ratio' at 67.0%. The estimate is in contrast to the year-ago figure of 77.1%.
Analysts expect 'GAAP Expense Ratio' to come in at 30.5%. Compared to the present estimate, the company reported 30.9% in the same quarter last year.
View all Key Company Metrics for Hanover Insurance here>>>
Hanover Insurance shares have witnessed a change of +7.8% in the past month, in contrast to the Zacks S&P 500 composite's +2.5% move. With a Zacks Rank #5 (Strong Sell), THG is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report
