RLI Corp. (RLI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended December 2023, RLI Corp. (RLI) reported revenue of $378.44 million, up 14.9% over the same period last year. EPS came in at $1.54, compared to $1.53 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $386.3 million, representing a surprise of -2.03%. The company delivered an EPS surprise of +6.94%, with the consensus EPS estimate being $1.44.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Expense Ratio- Total: 40.4% versus 39.7% estimated by four analysts on average.
Loss Ratio- Total: 42.3% compared to the 44.9% average estimate based on four analysts.
Combined Ratio (Underwriting income ratio) - Total: 82.7% versus 84.7% estimated by four analysts on average.
Combined Ratio - Surety: 84.9% versus the three-analyst average estimate of 78.7%.
Combined Ratio - Property: 54.5% compared to the 66.7% average estimate based on three analysts.
Combined Ratio - Casualty: 99% versus the three-analyst average estimate of 94.9%.
Net premiums earned: $345.89 million compared to the $352.76 million average estimate based on four analysts. The reported number represents a change of +14.9% year over year.
Net investment income: $32.55 million compared to the $33.54 million average estimate based on four analysts. The reported number represents a change of +14.4% year over year.
Net premiums earned- Surety segment: $34 million versus the two-analyst average estimate of $33.79 million. The reported number represents a year-over-year change of +3.8%.
Net premiums earned- Casualty segment: $195.96 million versus $202.67 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.
Net premiums earned- Property segment: $115.93 million compared to the $114.46 million average estimate based on two analysts. The reported number represents a change of +36.5% year over year.
Net unrealized losses on equity securities: $49.31 million versus $0.52 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +44.3% change.
View all Key Company Metrics for RLI Corp. here>>>
Shares of RLI Corp. have returned +9.6% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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